A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures (like a cone). Here is an example of IEX. The company has declared a good set up of numbers on 22nd July. Profit after tax is up by 48% Sales are up by 36% The price is now hovering near the previous Resistance which now acts as a support Tight price range near the support level. Look at the small candles. Price goes up with rising volume on 23rd Aug. Any pattern may falter depending on the overall market condition. So one should always keep a stop loss. :) Hope you liked the idea. Happy trading.
交易進行
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Booked profit on 1/4th position. I Will let the rest of the position run until it breaks 9 EMA.
@princechopra5577, I never traded intraday so can't tell. But when I buy a stock, I do look at intra-day support levels.
shyask262
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Looks interesting; by the way, where is the Pennant in your chart? Is this a traiangle imagining trend lines? Still can't figure out how you get the converging sides...
ObliviousChart
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@shyask262, basically it is consolidation after a breakout. You can google it there are so many examples there. You are correct, it kind of looks like a triangle.
As we are in a bull market, you will find this pattern in a lot of stocks.
Thank you for your valuable contribution to the TradingView community and keep up the good work!
Good clear chart with good clear explanation. (and it went up :))