#Vechain : Great example of a Bull Pennant Pattern
Bull Pennants are a little different to Bull Flags but are almost identical in apperance and are traded basically the same.
The most important factor in identifying any flag or pennant pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern.
After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards.
Bull Flags and Bull Pennants have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas. Enter at the invalidation point of the pattern (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target.
Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on this current example with ADA. The liqudity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long once the price confirms support back inside the pennant.
Vechain is also one of the best cryptocurrency projects out there. VeChain, with its cryptocurrency VET, is a blockchain platform that focuses on financial services, supply chain management, and smart contracts. VET was the first cryptocurrency to create a disaster recovery plan and the first one to partner with the Chinese government. It has real world working products and partnerships - which many cryptocurrencies can not say they do.
Some key points:
• PRICE MUST MOVE STRAIGHT UPBEFOREHAND
• MIN 2 Touches each side on almost symmetrical looking wedge
• HIGH SUCCESS RATE
• BEST ENTRY IS often when price fakes out under support
• Pattern height is measured and added to swing low before breakout for possible target
Dont forget to hit like & leave your comments if you like the idea thank you traders!
The most important factor in identifying any flag or pennant pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern.
After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards.
Bull Flags and Bull Pennants have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas. Enter at the invalidation point of the pattern (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target.
Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on this current example with ADA. The liqudity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long once the price confirms support back inside the pennant.
Vechain is also one of the best cryptocurrency projects out there. VeChain, with its cryptocurrency VET, is a blockchain platform that focuses on financial services, supply chain management, and smart contracts. VET was the first cryptocurrency to create a disaster recovery plan and the first one to partner with the Chinese government. It has real world working products and partnerships - which many cryptocurrencies can not say they do.
Some key points:
• PRICE MUST MOVE STRAIGHT UPBEFOREHAND
• MIN 2 Touches each side on almost symmetrical looking wedge
• HIGH SUCCESS RATE
• BEST ENTRY IS often when price fakes out under support
• Pattern height is measured and added to swing low before breakout for possible target
Dont forget to hit like & leave your comments if you like the idea thank you traders!
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So far the pattern is playing out perfectly!
