PAIR: LTCUSD THE BULLISH PENNAT FLAG PATTERN
Pennants are the workhorses of the day trader. They perform an invaluable service by marking the midway point in a move.
However, if a pennant is not accompanied by a flagpole, then it's not a Also, performance depends on a strong price trend leading to the pennant.
Price trend Can be any direction leading to the chart pattern. Shape Looks like a short symmetrical triangle.
Prices move between two converging trendlines(MOST TIMES EXCLUDING THE WICKS).The flagpole which leads to the pennant should be unusually steep and last several days.
Volume trend Downward trend 88% of the time and Breakout Upward 61% of the time.
TECHNICALS SUGGEST that price is currently below a diagonal resistance and waiting to breakout above the 0.382fib retracement level.
A buy signal is only given when price breaksout of the flag and closes outside it.
BUY : $160 - $155
SELL: $200, $458 and $568
STOP LOSS: $123
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.