What is a bullish pennant

The Bullish Pennant is a technical analysis pattern that often indicates the continuation of an upward trend after a strong price increase.

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🔍 Its components:

1. The Pole:

A strong and rapid price increase, often resulting from significant liquidity entering the market or positive news.

2. The Pennant:

A consolidation or slight correction area after the rise, taking the shape of a small triangle with converging sloping trend lines.

3. The Breakout:

After the consolidation phase ends, the price breaks through the upper line of the triangle to continue rising.

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📌 Why does it happen?

After a strong rise, some traders take profits while new buyers enter.

The price cools down a bit, but the overall trend remains upward.

When demand returns strongly, the breakout occurs, and the price continues to rise.

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💡 Trading method:

Entry: After breaking the upper limit of the pennant with high trading volume.

Profit target: Measure the length of the pole and add it above the breakout point.

Stop loss: Below the lower limit of the pennant.