#BTC☀️ #ETHETFS #altcoins The pennant is a continuation pattern that is used by traders to predict upcoming market movements. This pattern is similar to the triangle pattern, but there are a number of important differences between them that you should be aware of.

The pennant pattern is a continuation pattern that is formed when a significant upward or downward movement is recorded, followed by a short-term consolidation, and then the movement continues in the original direction. The pattern looks like a small symmetrical triangle consisting of many candles. Depending on the trend direction, the pennant pattern can be either bearish or bullish.

Peculiarities of the pennant pattern

Looking at the pennant continuation pattern, the following features can be noted:

— Flagpole: the formation of a pennant always starts with a flagpole, which is what distinguishes this pattern from patterns of a similar type (such as a symmetrical triangle). A flagpole is an initial strong movement that precedes the symmetrical triangle on the chart;

— Breakout levels: there are actually two breakout points in the pattern; one at the end of the flagpole, and the other (we can say the main one) at the end of the consolidation period, after which the uptrend or downtrend continues;

— The pennant itself: a triangular pattern formed when the market consolidates between the flagpole and the main breakout. Two converging trend lines form a triangle - a pennant.

Bullish pennant

A bullish pennant is a continuation candlestick pattern that appears in strong uptrends. A pennant is formed from a rising flagpole, a period of consolidation, a subsequent breakout and continuation of the uptrend. Traders wait for a bullish breakout above resistance to take advantage of the renewed bullish momentum and open a profitable trade.