Pennants are my favourite patterns, they occur just after a sharp drop in price and resemble a flag. they provide good opportunity for shorting as it continues with another similar-sized fall in price usually usually
-- Sell after the support level has been broken, either on a breakout or on a retest of the lower trend line.
… the stop loss is placed above the opposite trend line.
… the profit target is placed the same distance under your entry point as the height of the pole (the initial price drop).
-- Sell after the support level has been broken, either on a breakout or on a retest of the lower trend line.
… the stop loss is placed above the opposite trend line.
… the profit target is placed the same distance under your entry point as the height of the pole (the initial price drop).