Pennant Continuation Chart Pattern Video Lecture | Chart Pattern Trading: Learn the Fundamentals - Business Basics

good afternoon everyone this is
Christian with perfect stock alert calm
a 100% free service for smart investors
and traders all we ask and return a
please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that today we're gonna be
looking at the pennant chart pattern
this is a continuation chart pattern
this can happen in an uptrend or a
downtrend but there's a couple of items
you need to note regarding it it's a
short-term formation basically meaning
it's gonna be four to eight weeks long
they can go longer but typically four to
eight weeks but normally gonna happen
the first thing you're gonna find in
this particular pattern on a bullish
side is that you're going to have a
strong advance leading up to it and that
you will have a breakout or a rally off
support something and that rally will be
supported by a substantial volume that's
required okay
the pennant pattern forms this formation
right here the symmetrical triangle
forms as the consolidation phase after
that move and it marks the middle of the
overall move okay so whenever you see
this formation after it was a strong
rally which could have gaps in it strong
rally on strong volume then you would
look for this consolidation period as
only the middle of the move and expect
more to the upside which you would want
to wait for that before you bought into
it you'd want to wait for the breakout
the breakout is actually going to be the
confirmation of this formation and you
get the breakout when price closes above
the upper resistance line this will be
in the upper resistance line right here
drawn up on the tops of this price
activity drawn upon the bottom would be
support and you just watch these two
points converge until price activity
finally breaks out it's quite common to
find volume decrease substantially
during this consolidation phase of the
pennant formation it should be also
noted that when you take the price
activity from the
I of the pennant down to the original or
previous support/resistance line that is
known as the pole and it can be used as
a gauge or target for how high you
expect price to continue once the
breakout does happen in this particular
case takes 17 98 to about 12 dollars
do the math and add that same distance
to about here and you get a kind of a
price target how high expect that to go
again this particular chart pattern the
pennant chart pattern can be seen in an
uptrend or a downtrend
it marks the middle of the move and the
most important element of this in my
opinion is going to be the volume behind
the initial advance right there but
that's not there I would trust it to
continue if it is there then I would be
betting highly likely that you're going
to have a breakout continuation even if
only to see how much higher they can go
on lower volume they will be an attempt
please take a moment to review our
disclaimer the information provided here
it is our opinion only under no
circumstances do any statements here
represent a recognition to buy or sell
securities or make any kind of an
investment you are responsible for your
own due diligence to summarize we do not
provide investment advice nor do we make
any claimed or promises that any
information here will lead to a profit
loss or any other result these videos
are for educational purposes only