Figures of technical analysis: "Pennant" - trend continuation

Technical analysis figure "Pennant" is a frequent pattern of continuation of the trend on various stock exchanges, including . In its essence, Vimpel is similar to the continuation figure "Flag" with the only difference that it has the form of a converging triangle.

This technical analysis pattern is a corrective movement with a narrowing range after a strong trend up or down. In fact, it is a period of profit taking before a new price spurt.

Trading signals of the technical analysis figure "Pennant"

In an uptrend workflow Vympel" figure next: when the resistance line is broken, we open a long position with a Stop Loss just below the minimum point of correction and a potential target equal to the upward movement of the original trend.

In the descending "Vympel" pattern signal to sell appears after the support line is broken, the stop order is set a little above the maximum point of correction, and the goal - equal to the movement of the downtrend to the formation of the "Pennant".

Example of "Pennant" technical analysis pattern