ObliviousChart

How to make a winning trade using pennants

Education
NSE:IEX   INDIAN ENERGY EXCH
  • 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!

Comments

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Good clear chart with good clear explanation. (and it went up :))
200 coins
+5 Reply
@AngusMcK, Thanks :)
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brother can i use penant in day trading?
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ObliviousChart princechopra5577
@princechopra5577, I never traded intraday so can't tell. But when I buy a stock, I do look at intra-day support levels.
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Looks interesting; by the way, where is the Pennant in your chart? Is this a traiangle imagining trend lines? Still can't figure out how you get the converging sides...
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@shyask262, basically it is consolidation after a breakout. You can google it there are so many examples there. You are correct, it kind of looks like a triangle.
As we are in a bull market, you will find this pattern in a lot of stocks.
+2 Reply