A pennant can be used as an entry pattern for the continuation of an established trend. The formation usually occurs after a sharp price movement that can contain gaps (known as the mast or pole of the pennant) where the pennant represents a period of indecision at the midpoint of the full move, consolidating the prior leg. The price is contained by a small symmetrical triangle that begins wide and converges to a point as the pattern develops.
Bullish pennants can form after an uptrend, bearish pennants can form after a downtrend. The pattern has completed when price breaks out of the triangle in the direction of the preceding trend, at which point it will likely continue in this direction. Conservative traders may look for additional confirmation of the trend continuing. The target can be estimated using the technique of measuring the length of the mast and extending it in the direction of the breakout. A common stop level is just outside the pennant on the opposite side of the breakout. Pennants should not be mistaken for triangles, which are distinct price patterns.
Go Short for Infosys - It reaches 630 - 632 level in near term to rebounce toward upper side. As rupee strengthens. IT stocks(Infosys, TCS) keep falling and gets weaker.
REMEMBER - Always follow risk management and position sizing (how many stocks to buy) before taking trade which will save you. Be cool while trading and Happy Trading. Otherwise don't trade.
Double inside bar in HDFC, it has also formed a penant
Short at PDL, if PDL is broken with SL at PDH
Long at PDH, if PDH is brokem with SL at PDL
If it gaps, watch first 5min candle, then ORB
PDL - 1783.1
PDH - 1814
Bearish Pennat pattern: SL:455, Target 1: 393, Target 2: 260
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
If closes below 1100 (i.e. a breakdown), Sell: 1095, SL:1128, Target1: 1072 Target 2: 935 levels
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
HCC Entry 15.15 | Stop 13.95 | Target 20
8% Risk | 32% Reward
1: 4 RR
Continuation Pattern
Bullish Pennant
Price highs move slightly lower and price lows move slightly higher. Drawing a trend line connecting price highs and then another connecting price lows form two converging lines which are an identifying feature of the pennant.
IDENTIFICATION ...
AUROPHARMA SHORT TRADE(IF PENNANT BREAKOUT DOWN)
AUGUST FUTURES
SHORT AT THE BREAKOUT OF THE PENNANT AFTER
2:30 THE BAR WILL BE COMPLETE A BREAK BELOW
THE SUPPORT LINE OF 684 IS A GOOD INDICATION
SHORT@684
STOP@590
TARGET@666
LOT:1000
QTY:2
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