The Rising Pennant (or Bullish Pennant) pattern looks like a pennant with a mast. It forms when rising prices experience a consolidation period, and the price moves within a narrow range defined by the converging lines through points (2, 4) and (3, 5). After the consolidation, the previous trend resumes.
This type of formation happens when anticipation of an uptrend is high, and when the price of a security consolidates within a range. It indicates growing investor interest in a potentially explosive uptrend.
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout. The breakout price level for the Rising Pennant pattern is the last point touching the top line (4). To identify an exit, compute the target price by adding the initial rise between points 1 and 2 to the breakout price. When trading, wait for the confirmation move, which is when the price rises above the breakout level.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.
As of 2016, you may contribute up to $53,000 annually to your Self-Employed 401(k), plus a $6,000 catch-up contribution
An earnings call is when a company opens up a teleconference line or webcast that the public can join to hear the...
Despite how it sounds, this publication is not meant for tourists to the US, but rather for non-US-citizen workers
The Triple Bottom pattern appears when there are three distinct low points that represent a consistent support level
You may wish to construct your own asset allocation, but there are asset allocation programs available which can take...
It requires a great deal of due diligence, but investors should understand that past performance is not indicative of...
One simple way is to purchase the stock of companies that produce commodities. The primary commodity exchange is the CME
Operating profit is synonymous to operating income, and represents a company’s profitability from its core operations which excludes earnings from other investments.
Debt financing occurs when a company borrows money or secures financing through loans, with the obligation to repay
Leading indicators are economic or price data which have some degree of correlation with a movement in the market