Pennants are a technical pattern used to identify continuations of sharp price moves.Not sure if you’re ready to commit real capital to your pennant strategy? Open an IG demo account to put it to the test with £10,000 in virtual funds. Identify bearish and bullish pennants using the IG trading platform or MetaTrader 4 (MT4).IG traders get access to thousands of markets, including forex, indices, shares Head over to IG Academy to learn everything you need to know about technical trading. ![]() How to trade bullish and bearish pennants with IG For our EUR/USD trade, for example, you might be risking 10 or 20 points in exchange for 200 points of potential profit. This is one reason why pennants are so sought after by traders – relative to other patterns, the risk-reward ratio tends to be high. With both strategies, your stop is far closer than the point at which you take profit. You’ll want to give enough room for the price to oscillate before any breakout takes hold, but not so much that your losses are too great if the pattern breaks. If you’ve waited until the market retests its old area of support or resistance, you’d place your stop a few points below your entry position.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |