trading
swing picks
Trading Home
TRADING STOCKS - CHART PATTERNS

levelSwing Trading Picks ] [ Swing Ideas ] [ Swing Charts ] [ Daily Stock Picks ] [ Trading Software ] [ Chart Patterns]

Stock Trading  Stock Trading - Technical Analysis, Trading stocks, Stock Charts, Trading strategies

Trading Education   Trading Ideas   Trading Strategies   Trading Tools
 

 

 
TRADING STOCKS TACTICS - CHART PATTERNS

Limited Offer - 60 days Try-Out:
Try Forex Profit Accelerator For FREE
Special Time Limited Risk-Free Offer!

Protect & Grow your portfolio
Portfolio Prophet
AVOID market crashes

Forex Profit Multiplier
MULTIPLY your profit potential in 60 seconds or less of active trading

Continuation Chart Patterns

Trading stocks education - Trading tactics & examples

Bearish Pennant

Bearish Pennant is a sharp, strong volume decline on a negative fundamental development, several days of narrowing price consolidation on much weaker volume followed by a second, sharp decline to new lows on strong volume.

The technical target for a bearish pennant pattern is derived by subtracting the height flag pole from the eventual breakout level at point (e).


Bearish Pennant

Super Divergence Blueprint - Learn how to discover 'hidden' market moves. There are points in any market (stocks, forex, futures) where a "divergence pattern" occurs that could trigger a potentially huge market move that most trend-following methods would otherwise miss? Super Divergence Blueprint by ProfitsRun reveals how you can discover Hidden Trades with astonishing simplicity. » Click To Get More Info!

Pennants look very much like symmetrical triangles. But pennants are typically smaller in size (volatility) and duration. Volume generally contracts during the pause with an increase on the breakout.

  • Sharp Move: To be considered a continuation pattern, there should be evidence of a prior trend. Flags and pennants require evidence of a sharp advance or decline on heavy volume. These moves usually occur on heavy volume and can contain gaps. This move usually represents the first leg of a significant advance or decline and the flag/pennant is merely a pause.
  • Flagpole: The flagpole is the distance from the first resistance or support break to the high or low of the flag/pennant. The sharp advance (or decline) that forms the flagpole should break a trend line or resistance/support level. A line extending up from this break to the high of the flag/pennant forms the flagpole.
  • Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction highs and lows, the price action just needs to be contained within two parallel trend lines.
  • Pennant: A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures (like a cone). The slope is usually neutral. Sometimes there will not be specific reaction highs and lows from which to draw the trend lines and the price action should just be contained within the converging trend lines.
  • Duration: Flags and pennants are short-term patterns that can last from 1 to 12 weeks. Ideally, these patterns will form between 1 and 4 weeks. Once a flag becomes more than 12 weeks old, it would be classified as a rectangle. A pennant more than 12 weeks old would turn into a symmetrical triangle. The reliability of patterns that fall between 8 and 12 weeks is debatable.
  • Break: For a bullish flag or pennant, a break above resistance signals that the previous advance has resumed. For a bearish flag or pennant, a break below support signals that the previous decline has resumed.
  • Volume: Volume should be heavy during the advance or decline that forms the flagpole. Heavy volume provides legitimacy for the sudden and sharp move that creates the flagpole. An expansion of volume on the resistance (support) break lends credence to the validity of the formation and the likelihood of continuation.
  • Targets: The length of the flagpole can be applied to the resistance break or support break of the flag/pennant to estimate the advance or decline.

* * *

Swing Trading:   Futures Trading | Quantum Swing Trader | Day Trading | Trade Forex
   Quantum Swing Trader  ~  Swing Trading Principles  ~  UMT  ~  ETF  ~  Trading Videos

  Trading Tactics
  Chart Patterns
  Swing Trading
  Trading Gaps
  Elliott Wave Trading
  Strategy Guide
  Technical Analysis
  Trading Software
  Trading Stock Picks
  Trading Commentary
  Daily Trading Signals
  Charts:
*   BDY
*   HAS
*   ADRX
*   GOOG
*   MSFT
*   MICU
*   PETM
*   SBGI
*   SHOP
*   SOLF
ChartPattern Trading $ystems
Dan Zanger Offers 3 week FREE trial!

Shopping: Products & Services

Swing Trading Daily Blog     Swing Trading Ideas
Trading - VIII   VII   VI   V   IV   III   II   I   XII   XI   X   IX

Trading Tutorials   Pattern Cycles Highs, Bottoms, Breakouts, Declines, Reversals, Tops, Trends | On Bottoms | Adam & Eve Tops | Adam-Eve-Adam | Bilateral Setups | Bollinger Band Tactics | Market Physics | 5 Fibonacii Tricks | Hell's Triangle | MA Crossovers | OverBought / OverSold | The Big W | Time Trading | Voodoo Trading

Chart-Pattern

Futures Trading Room

Forex Trading Room



Sharks     Great White Shark     Shark Attacks     Med Sea Sharks
               Wizard of ID