How to make a winning trade using pennants

ObliviousChart Updated   
  • 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.
Trade active:
Booked profit on 1/4th position.
I Will let the rest of the position run until it breaks 9 EMA.
Trade closed: target reached:
Sold remaining quantities today!


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