NEO A pennant is forming. Price in the corner. Potential + 45% NEO After breaking through the impulse of a global downtrend, which lasted almost a year, the price draws a canvas of a symmetrical upward pennant. The price is almost in the corner of the canvas, soon the denouement. Potential for working out the figure + 45%. This is the height of the flagpole of the figure.
It is also worth noting that there was a large volume on the pulse, which acts as the flagpole of this figure. All pivot points and local levels on the reaction of which the further movement depends, I showed on the graph. See more global goals in a past trading idea that worked well.
The entrance is on a breakthrough of the canvas or on a rollback of the price, depending on who has what trading strategy. It is worth noting that pennants work out impulse, and therefore there may not be a rollback after a breakthrough.
Past trading idea. Published October 8th
Result after 20 days + 47%
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Features, Pennant figures.
1) The emergence of such a model is preceded by a sharp movement in prices in the form of an almost straight line, accompanied by a significant volume of trade.
2) "Pennant" has an outline similar to a small horizontal symmetrical triangle.
3) "Pennant" are formed approximately in the middle of the price movement.
4) When a "pennant web" is formed, the volatility step and the trading volume decreases.
5) Trading volume increases when the "pennant web" breaks in the direction of the trend.
6) "Pennant" is formed more quickly with a downtrend.
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There are two types of Pennant for the trend:
1) "Ascending pennant ."
2) "Downward pennant ."
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a) “Ascending pennant” - a figure arising from the development of a strong impulse aimed at overcoming the resistance level . Its appearance on the chart is accompanied by a sharp increase in trading volumes, as a result of which one or two long ascending candles, called the “flagpole”, can be observed. Then, after the impulse reaches a certain strong price level, the formation of a “canvas” similar to a small triangle occurs. After which, in most cases, the further development of the current trend continues.
b) “Downward pennant” - a figure absolutely identical to its ascending formation, but directed from top to bottom during the development of a strong trading impulse on a negative trend. Outwardly, the “descending pennant” differs from the ascending one only in direction.
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In the form of "Pennant" is divided into three types:
a) Symmetric pennant (which everyone is used to).
b) Ascending Pennant .
c) Downward Pennant.
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Trading options. Target.
There are two main trading tactics for various Pennants:
1) Trade on the distance of the flagpole of the figure.
2) Trade at a distance of the maximum height of the instrument - the central part of the Pennant (the height of the "canvas" of the figure).
It is also important if the price is being traded in your favor, and according to the plan you should already fix the profit, then it is advisable to stay in position while you get additional profit instead of the planned one.
There must be a strategy and plan. At the same time, your strategy and plan should be plastic from market situations.
