Bullish pennant pattern 📈
A bullish flag is a technical chart pattern that forms when there is a significant price movement in an asset, followed by a short period of consolidation.
The pattern is characterized by two converging trend lines forming a triangle, with the price of the asset fluctuating within this triangle.
Trend lines converging in a bullish pennant indicate that buyers and sellers of an asset are in temporary equilibrium, but momentum is likely to continue in the direction of the initial price movement.
This pattern is called "bullish" because it often indicates that the asset's price is likely to continue its upward trend.
Traders often look for a break above the upper trendline of a bullish pennant as a signal to buy the asset, with a stop loss placed below the lower trendline.
The target price for the trade can be calculated by measuring the height of the initial price movement and projecting it upward from the breakout point.
