Archive for Pattern Trading
Improve Your Trading : Trading In Consolidation
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Pennant Pattern Consolidation - How to Trade
The importance of knowing when you are in a consolidating market is that you can see if it is channeling in a flag pattern or a pennant pattern. When you see a pennant pattern, how should you trade it? You should look to get in at the support and resistance trendlines that make up the pennant and take your profit quicker as the pennant narrows. Do not expect each of your trade entrys to be the break out. Enter your trade, fund your trade and leave some to run. Just as the pennant continues to narrow take your profit more quickly as the pattern continues to develop. We will be posting a trading video tutorial on how to trade a pennant pattern in the next day, so please check back. Look at the graphic and you will see why if you do not manage your pennant pattern trading you will become frustrated and stopped out more often than you would like.
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