Pennants are continuation patternsthat appear in the forex market and are used by traders to predict upcoming market movements. While similar to the triangle pattern, the Pennant pattern has some important differences that traders need to be aware of.
In this article, you will learn how to recognize Pennant chart patterns, what they mean, what causes them and, most importantly, how to use them to place more effective trades.
What is a Pennant Pattern?
A Pennant pattern is a continuation chart pattern, seen when a security experiences a large upward or downward movement, followed by a brief consolidation, before continuing to move in the same direction. The pattern looks like a small symmetrical triangle called a Pennant, which is made up of numerous forex candlesticks. Depending on the direction of the movement, Pennant patterns are usually described as being bearish or bullish.
Key characteristics of a Pennant pattern
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