Is it really a break out if the market doesn't close above the break out area? Just something to think about. Also, go do a relative strength analysis of the stock vs. the S&P 500 over the duration of the pennant pattern.
Candle Stick Pattern Expert needed
- Thread starter iPittyTheFool
- Start date
Well yes, the breakout failed obviously. That's actually the point of my question. There was a big price spike on big volume, followed by a big price fall on big volume. Why did if fail the way it did? Is there a specific candle stick pattern, that I don't know yet? It remotely looks like a shooting star pattern, but not quite. Is there a candle stick pattern that fits this chart?
You're looking for certainty in patterns and techniques. But to answer your question directly -- no clear candlestick pattern that I can see.
Assume that this is a valid pennant pattern, I actually don't see the sell-off. Where is the sell-off? According to the chart that you posted, to me, it looks like the price is still trying to break out of consolidation and the break-out might not have happened yet. You just need to be patient and not set the stop-loss target so tight.
Many times though they are not reliable. TA only works when there is no news. I mentioned to you earlier there is a dividend event so that might be the news event that's invalidating the TA pattern here.
Not a huge fan of most candlestick patterns. Take it from someone who has posted over 1000+ chart setups on my (now retired) trading channel.
There's not enough reliability in them to go off alone. Learn, support & resistance instead.
However, I do like using the "3 white soldiers" on a very bullish ticker occasionally. One of these was formed on AMD just recently.
There's not enough reliability in them to go off alone. Learn, support & resistance instead.
However, I do like using the "3 white soldiers" on a very bullish ticker occasionally. One of these was formed on AMD just recently.
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Fer fuck's sakes. Everyone is dancing around the issue. It is called a "decreasing wedge" pattern, and it is going to break hard one way or the other the closer it reaches that pinnacle point.
When it breaks the wedge tip, just follow the momentum after the first pause to smell if it is a false break of the pattern.
Lower highs and higher lows. Don't they still teach this stuff in grade school?
When it breaks the wedge tip, just follow the momentum after the first pause to smell if it is a false break of the pattern.
Lower highs and higher lows. Don't they still teach this stuff in grade school?
It's called a bullish pennant or falling pennant because it has a flagpole or a stem on the side. Wedge has no poles on the side. Learn to use the correct term, old man.
That's what I told OP. He needs to be patient. The breakout hasn't happen yet. But TA does fail in the face of news.
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It's called a bullish pennant or rising pennant because it has a pole or stem on the side. Wedge has no poles on the side. Learn to use the correct term, old man.
What...Because the higher lows have a greater slope than the lower highs? Man, F that noise. I am not the the old man. It is just a simple decreasing wedge. You younger whipper-snappers want to over-complicate things by over-analyzing.
Don't make me come over there!
Actually it's called a falling pennant. Corrected it in my edits. You missed my edits again. Jumpy old man.