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How should we trade a Pennant Pattern? Real ExampleToday we have another Academy Post. In this article, we will explain the way we trade pennant patterns on a real setup. FIRST STEP: Understand the context -In this case, we have the price inside an ascending channel (that provide us a bullish direction) -The price is at All-time Highs ( Next Resistance zone, the upper trendline of the channel) -The price is above a previous Resistance zone (we can deduce Strenght of the price) SECOND STEP: Creating a Setup -Now that we have a clear idea about the bullish potential and free path towards the next resistance zone (upper trendline of the channel), we need to develop a setup -First of all, we need a valid Structure. In this case, a pennant structure to be valid needs an ABCDE formation; the reason is that if we wait for those 5 Waves, we can have a clear idea of the breakout level (The lower and Higher trendline have been tested multiple times, based on that we can set our orders with confidence) - A setup is composed of 4 items a) Entry Level: Above B (check the pennant theory) b) Stop level: Below C c) Take Profit level: On the 2nd Fibo Extension or in the next resistance zone d) Break-Even level: First Fibo Extension. -Only trade if your Risk Reward ratio is above 1.5 ( that means that for every dollar you are risking, you expect to make 1.5) THIRD STEP: Define your Risk and Follow your rules. -Only use 1% of your capital on any given trade. That way, you will protect the most important thing as a trader. Your money and your mind -Follow your rules: The reason you want to have a clear Stop, Take profit, entry, and Break-Even is to act only if the price reaches one of those. otherways, DO NOT TOUCH ANYTHING -Accept that Stop losses are part of any system: You don't need "90% accuracy"; you need to be right half of the time and a risk-reward ratio above 1.5 to be profitable. Trade Safe, Thanks for reading!
NASDAQ:GOOGLEducation
by ThinkingAntsOk
Still bullish on Alphabet. NASDAQ: GOOGLI was looking through the hightech QQQ stock index and thought I might do a review on some of the major players in that index. Still bullish on Alphabet, but it's looking like it's closer to the end here. RSI shows slowing momentum, EWO is in agreement with my fractal mapping. Expecting a fifth wave to complete now. Fibonacci goals are inplace. If my count is right then we are correcting, and this too will drop unless FedReserve doesn't step in and start printing even more money. I will be watching this space closely. NFA .
NASDAQ:GOOGLong
by Rykin_Capital