Markets are closed for weekend.

Create an Account

Its Free and always will be!

Sign up or login with your social accounts

Understanding Pennants :: Technicals

PennantFlags and pennants can be categorized as continuation patterns.  They usually represent only brief pauses in a dynamic market.  They are typically seen right after a big, quick move.  The market then usually takes off again in the same direction.  Research has shown that these patterns are some of the most reliable continuation patterns.

Bullish flags are characterized by lower tops and lower bottoms, with the pattern slanting against the trend. But unlike wedges, their trend-lines run parallel.

Bearish flags are comprised of higher tops and higher bottoms.  "Bear" flags also have a tendency to slope against the trend.  Their trend-lines run parallel as well.

Pennants look very much like symmetrical triangles.  But pennants are typically smaller in size (volatility) and duration.

SBIN : Pennat Pattern found on 27/6/14


Rate this blog entry:
Investing v/s Savings - A Layman's explanation
Understanding P/E - A Layman's explanation


No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Saturday, 24 August 2019

Captcha Image

Popular Investing Books

Daniel R. Solin
Mark Skousen
Robert G. Hagstrom
Howard C. Thomas
Jeremy Perler
Elaine Henry

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

Reduce your Brokerage by 100%!!

 146 members logged in

Be a Smart & Well Informed Investor!
Join Today its Free.
Register or Login with just one Click using your Social Account