|
Bull flag in an uptrend. Big
move with big volume. Notice how
the breakout move was
approximately as large as the
flag's 'pole'.
"BULL"
PENNANT IN AN UPTREND (BULLISH)
"Bull"
pennant in an uptrend. After a
month long rally, the market
takes a five day breather and
continues even higher. Volume
dips briefly and then picks up
on the breakout.
"BULL"
PENNANT IN AN UPTREND (BULLISH)
How's that
for a pattern? Remember from
the preceding page; 'pennants
look very much like symmetrical
triangles, but are typically
smaller in size (volatility) and
duration.' After a near
straight up advance, the market
takes only three days before
resuming the upmove. During
those few days, participation
drops off a bit, but comes back
as the market explodes out of
the pennant. (Take a look at
all those gaps right before and
right after the pennant.
Obviously a very strong and
convinced market!)
"BEAR"
PENNANT IN A DOWNTREND (BEARISH)
"Bear"
pennant in a downtrend. This
pattern came right after a
'bear' flag breakout. (Can you
see it?) This pennant also
presents only a brief pause
before the market
reasserts itself in the
direction of the trend (down.)
Volume dips in the pattern and
jumps as the market breaks out
and gaps lower.
"BEAR"
PENNANT IN THE BEGINNING OF A
DOWNTREND (BEARISH)
"Bear"
pennant in the beginning of a
downtrend. After a dramatic two
day plunge, the market has a
short lived consolidation. The
rout continues and the market
collapses. You can see activity
dry up in the pennant. The
breakout though, was made on
extremely heavy volume. |
