New ATH soon?

4 Mar

Hello, friends! It seems Bitcoin has picked up the pace significantly! Are we expecting new highs soon?🧐

In my opinion, the price has formed a Bullish Pennant! And there has already been a breakout. 🚀 Do you agree?

https://www.tradingview.com/x/Q67BL8lB/

💡How to Trade a Bullish Pennant Pattern

There are four steps to trading this pattern successfully:

1️⃣Step One: Identify the Pattern Formation

The first step is to identify the pattern formation. This includes identifying an existing uptrend and the formation of a pennant after that uptrend has begun.
2️⃣Step Two: Wait for the Breakout

Once you have identified the pattern, it is important to wait for the breakout from consolidation before entering a trade. This breakout typically occurs to the upside, signaling a continuation of the uptrend.

3️⃣Step Three: Enter a Trade
Once you have identified the breakout, you can enter a trade by buying the stock on your stock brokerage platform.

4️⃣Step Four: Exit the Trade
The final step is to exit the trade. This can be done by either taking profits at a predetermined level or by using a stop-loss order.

🛑Stop Loss on Pennant Resistance
One way to place a stop loss when trading this pattern is to put it on pennant resistance. This will help you manage your risk and protect your profits in case the breakout does not occur or the market reverses course. Some traders prefer to place their stop losses below the breakout candle. Ultimately, it’s up to you to decide which method works for you.

✅Profit Target
The profit target for this trade is up to the trader. Some traders aim for a profit target equal to the height of the uptrend leading into the pennant formation, while others may take a more conservative approach and aim for a smaller profit target. Make sure your target is realistic and in line with your risk management strategy.


If you liked the post and found it informative enough, click 🚀, so others can see it too!☺️

It's a shame that many great posts go unnoticed!🥹

Thanks for Your attention😘
Always sincerely yours, Kateryna💙💛