Page 8 - Module 14 Pattern Formations
P. 8
Module 14 – Pattern Formations
How to trade the bearish pennant
This method allows you to trade as soon as the price breaks out of the triangle pattern.
Enter your trade
Enter your short trade as soon as a candlestick has closed below the pennant's lower trend line.
Fig 2 – Example of where to
enter trade whereby No 1
indicate Pole of the pattern and
No 2 the area where price has
broken the lower support of the
pennant. Sell order entry
marked in orange
Place your stop loss
Place your stop loss on the other side of the pennant, just above its upper trend line.
Fig 3 – Example of where to
enter Stop Loss whereby No 1
indicate Pole of the pattern and
No 2 the area where price has
broken the lower support of the
pennant. Sell order entry
marked in orange. Stop order
entry indicated with a Red No 2
7
