{"id":4409,"date":"2023-03-03T03:19:05","date_gmt":"2023-03-03T03:19:05","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/pennant\/"},"modified":"2023-03-03T03:19:05","modified_gmt":"2023-03-03T03:19:05","slug":"pennant","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/pennant\/","title":{"rendered":"Pennant"},"content":{"rendered":"

\nA pennant is a bullish or bearish continuation pattern in technical analysis that appears as a symmetrical triangle on a price chart. It is formed when the price of an asset moves in a narrow range after a significant price move.<\/p>\n

How to spot a pennant pattern?<\/h2>\n

Identify a significant price move in the asset.<\/p>\n

Look for a period of consolidation where the price moves in a narrow range and forms a triangle shape.<\/p>\n

Confirm the pattern by observing the converging trend lines that connect the highs and lows of the price action.<\/p>\n

A break of the lower trend line of a bearish pennant or the upper trend line of a bullish pennant indicates the direction of the next price move.<\/p>\n

How to trade using pennant pattern?<\/h2>\n

Traders can trade using the Pennant pattern by using the following steps:<\/p>\n

Identify the formation of the Pennant pattern on a price chart.
\nConfirm the pattern by observing the converging trend lines connecting the highs and lows of the price action.<\/p>\n

Place a buy order above the upper trend line of a Bullish Pennant or a sell order below the lower trend line of a Bearish Pennant.<\/p>\n

Set a stop loss order below the Pennant pattern to limit potential losses.<\/p>\n

Set a profit target using prior price levels or chart patterns as reference.
\nIt’s important to consider other technical and fundamental factors in addition to the Pennant pattern before making a trade decision. And always practice proper risk management by using stop-loss orders.<\/p>\n

<\/h2>\n

<\/h2>\n

<\/h2>\n","protected":false},"excerpt":{"rendered":"

A pennant is a bullish or bearish continuation pattern in technical analysis that appears as a symmetrical triangle on a price chart. It is formed when the price of an asset moves in a narrow range after a significant price move. How to spot a pennant pattern? Identify a significant price move in the asset. […]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-4409","post","type-post","status-publish","format-standard","hentry","category-trading"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4409"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4409\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}