How Do I Analyze Pennant Pattern Gold Chart Pattern?
How Do I Read Pennant Pattern XAUUSD Chart Pattern?
There are two different types of gold pennant patterns - bullish pennant chart pattern and bearish pennant chart pattern.
To trade these xauusd chart patterns a trader requires to learn about the gold technical analysis of bull pennant chart pattern and bear pennant chart pattern.
Bull Pennant Trading Pattern
Bull pennant chart pattern forms what looks like a rectangle pattern with a slight downwards tilt. Rectangle is formed by two parallel lines that act as support level & resistance level for the xauusd price until the xauusd price breaks out. In general, the bull pennant trading pattern will not be perfectly flat but it will be sloping & having a slight tilt.
The bull pennant pattern is found within an upwards xauusd trend. Bull pennant chart pattern is a continuation chart pattern where the price retraces slightly, bull pennant chart pattern is therefore a slight xauusd price retracement with narrow xauusd price action that has a slight downward tilt. Buy signal is generated when the price penetrates the upper line of the bull pennant chart pattern. The pennant portion of the bull pennant chart pattern has xauusd price highs & xauusd price lows which can be connected by small lines that are parallel, giving it what looks like a small channel - pennant.
The bull pennant chart pattern occurs at halfway point of a bullish upwards gold trend & after a xauusd price break out a similar move equal to the height of the pennant pole is expected.
Analyze Bull Pennant Chart Pattern?
The bull pennant pattern shown above was just a consolidation period as the gold market gathered momentum to break out and move higher. The bull pennant chart pattern continuation gold signal was confirmed when the upper line of this Bull pennant chart pattern was broken to the upside after which the xauusd price continued heading upwards.
Bear Pennant Chart Pattern- How Do I Read Pennant Pattern XAUUSD Chart Pattern?
This bear pennant pattern is found in a downwards trend. The bear pennant chart pattern is a trend continuation pattern where the price retrace slightly with a narrow price action that has a slight upwards tilt. The sell signal is generated when the price penetrates the lower line of the inverted bear pennant pattern. The pennant portion of this bear pennant pattern has xauusd price highs & xauusd price lows which can be connected by small lines that are parallel, giving the bear pennant chart pattern the look of a small channel - inverted pennant.
Analyze Bear Pennant Chart Pattern?
The bear pennant pattern above was just a consolidation period for the gold market trend prior to more selling and resuming of the downwards xauusd trend. The continuation gold trading signal from the bear pennant pattern was confirmed when the lower line of this bear pennant pattern was broken to the downside after which the xauusd trading price moved downwards.
Interpret Pennant Pattern XAUUSD Chart Pattern?
