Flags and Pennants

[rico01]

Bhp looks like a bit of a pennant forming ready for the next leg up

 

[bowman]

Four from the resource sector.

 

[bowman]

The US continues to rally. Is this a genuinely strong market or a bull trap?
Dunno, but I'm still mostly daytrading.

 

[nomore4s]

Just for a bit of fun.

Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.

Looking pretty bullish!? Everyone work out what it is?

 

[bowman]

Just for a bit of fun.

Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.

Looking pretty bullish!? Everyone work out what it is?

The good ole XAO - not looking quite as bullish today.


On the point of bullishness, don't write off a flag or pennant pattern when it fails. There might just be a good trade there a few days down the line.

 

[Wysiwyg]

A pennant is a relativeley long tapering flag and for technical analysis usually a symmetrical shape.

Not to be confused with rising/falling wedges, ascending/descending triangles or diddly squats.

 

[bowman]

A pennant is a relativeley long tapering flag and for technical analysis usually a symmetrical shape.

Not to be confused with rising/falling wedges, ascending/descending triangles or diddly squats.

If it flies on the top of a 'flagpole' I'll trade it if I can, whatever shape it is, but I'm happy to remove offending charts or call them something else.

Perfect patterns are for academics and trading book authors.

It's all about the moneeeeee.

 

[Trembling Hand]

Just for a bit of fun.

Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.

Arrhhh!!

I spent 10 min last night doing a search for this. was going to reply that there was only 1 stock in all the ASX that closed between 37 and 37.5.

But its doesn't match! And I stare at this chart all day, fool!

 

[nomore4s]

Arrhhh!!

I spent 10 min last night doing a search for this. was going to reply that there was only 1 stock in all the ASX that closed between 37 and 37.5.

But its doesn't match! And I stare at this chart all day, fool!

lol, I thought you would have been the first to get it.

rotflmao

 

[bowman]

Arrhhh!!

I spent 10 min last night doing a search for this. was going to reply that there was only 1 stock in all the ASX that closed between 37 and 37.5.

But its doesn't match! And I stare at this chart all day, fool!

LOL. I did exactly the same thing this morning.

Then I noticed the volume.

 

[sammy84]

Thanks nomore4's. I even went as far to run a scan of the US markets to see what was within that price range. There was alot, but nothing with that pennant

 

[nomore4s]

lol, sorry guys I didn't think it would cause such a problem

You could've just asked:

 

[sammy84]

You could've just asked:

Wheres the fun in that!

 

[moXJO]

They name pops up when you mouse over the chart I thought?

 

[bowman]

ROFLMAO!

So it does.

 

[>Apocalypto<]

nice thread guys keep it up!

 

[beamstas]

 

[db96]

MLI is forming a wedge/pennant. Is there much difference between the the two. The important question is which direction is it going to break out.

 

[Sean K]

MLI is forming a wedge/pennant. Is there much difference between the the two. The important question is which direction is it going to break out.

I'm not sure if a couple of days action is sufficient to establish a pattern. It may be, but there seems to be a higher probability of a pattern conforming to the T/A theory when there's more time involved in the S&R.

 

[bowman]

I tend to define flags and pennants as most patterns that form at the top of a 'flagpole'.

Bukowski is probably more specific when it comes to pennant and flag shapes.

He also specifies a duration. I'm not sure about the minimum, but from memory anything over three weeks he describes as a wedge or triangle rather than flag/pennant.