🔖🚀 Bullish Pennant Pattern — Strong Continuation Signal.
1️⃣ What is it?
A continuation pattern that appears after a strong upward move (the pole or Flagpole) followed by a tight consolidation in the shape of a small triangle (the pennant). A breakout above usually indicates a continuation of the upward trend.
2️⃣ How to recognize it
Starting with a clear upward move (long pole).
Then forming price convergence areas that create a small triangle (lower highs and tightening trading range).
Volume decreases during the formation of the triangle and then increases upon breakout.
3️⃣ Why is it important?
🔼 Potential continuation signal for upward movement — an opportunity to join the main trend.
⏱ Useful on timeframes like 1H, 4H, D depending on the trader's strategy.
4️⃣ How to trade it (Practical Method)
First condition — Breakout confirmation: Enter a buy after a candle closes above the triangle's resistance line.
Volume confirmation: Stronger entry when accompanied by an increase in volume at the breakout.
Target setting: Measure the length of the pole (Flagpole) and then add it from the breakout level → approximate target.
Stop loss: Below the lowest point inside the triangle or below the support line according to risk management.
5️⃣ Risk Management
Do not risk more than 1–2% of your capital on a single trade.
Use a suitable position size and respect the stop loss.
Choose a timeframe that matches your goal (scalping vs swing).
🔔 Important Notice: This content is for educational purposes only and not financial advice. Always do your own research before trading.
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