Forex pennant

Like we discussed earlier, the size of the breakout move is around the height of the mast (or the size of the earlier move). You see, pennants may be small in size but they could signal huge price moves so don 8767 t underestimate 8767 em!

Pennant — Forex Blog - EarnForex

I can quickly compare, regardless of which entry point I used, whether it 8767 s that one, I can see this is my risk for that trade, and my target is much bigger. Even if I enter down here. In that case, this is my risk from my stop to my entry point. So, that represents my risk, and my target is still bigger. So, the target goes from the top of the flag. So, we put it right at the top of the flag, and we can see our profit target would have been right down here, and we would have got out of that before this mess here. If not, we still would have been able to get out down here.

Trading pennants - Forexwiki

Bullish pennants are usually a reliable indication that a trend is set for a new upward leg. In other words they serve as good continuation signals. Pennants are useful in cases where you’ve missed the first wave of a trend but still want to capture some of the upward strength that’s remaining.

A Pennant is usually a method of pattern trading based on a continuation pattern. Continuation patterns also include Ascending Triangles, Descending Triangles, Wedges, Flags, Symmetrical Triangles and Pennants and are essentially technical patterns that are expected to lead to the continuation of an existing trend. Continuation patterns are considered a powerful trading tool as they usually result in extremely low risk trading opportunities and spectacular returns.

Pennants are really short-term triangles. They form with lower highs and higher lows, over one to five weeks. The line through the peaks and the line through the troughs converge and the pattern is completed by a break outside the converging lines.

The chart example in Figure 9 shows a strong falling trend on the USD/JPY H6 chart. To give some context, the small box on the top right shows a view of the entire trend.

So, once again, a few insights here. Focus more on letting the winners run out to your targets. Like I 8767 ve said in every video: no touchy-touchy. Just let the math do the work for you. That 8767 s what matters over the long run, not whether you take this trade here or this trade here. Another thing I want you to think about is the tendency of the price action. We are seeing that the price is making slightly higher highs. So, when this edges above your trend line, we know that the price is making slightly higher highs. So, don 8767 t trade that as a breakout, because we have a tendency already.

So, I 8767 ve chosen a few entries here on purpose. They 8767 re not all that pretty, to be honest. I 8767 ve chosen them for a reason, simply to tell you about a few other insights into trading. So, I 8767 ve written something here. For all these strategies, the exact entry doesn 8767 t matter. Over a great many trades, it is simply that you make more on... Oh, that got cut off... more on your winners than you do on your losers, and win about 95% of the time.

An upright flag has two parts. The first is a sharp upward move, which we call the flagpole, followed by a very tight consolidation that is angled slightly lower or sideways. Very rarely, it is angled slightly up. We draw lines along the highs and lows of the consolidation. Consolidation should be at least four bars and the breakout level neatly defined. I 8767 ll show you exactly what I mean by that when we look at the videos or the examples.

Timeframes to trade: 6hr, 9hr and daily timeframes are the best timeframes to trade this chart pattern (they are more reliable)

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