Binary Option Trading - Pennants and Continuation Patterns


Some articles we publish tell about how to pick patterns out from analytical charts in order to detect at what point a price will change its movement or if we believe it to remain the same. Continuation pattern is one of the most important to look for; one of the core indicators inside a continuation pattern which helps to indicate the price movement is a pennant. Let’s havea little more talk about those two things.

Before our talk about pennants we should clarify the difference between the two types of pennants, continuation and reversing ones and try to understand what outcome you will have after you follow each of them. A continuation pattern means that the price of an asset is breaking a consolidation area in the direction similar to the previous trend. And a reversal pattern is the one having a trend which is moving in a different direction after having broken out of the consolidation area.

Pennants are formed when we see a nearly vertical triangular patterns price movement, usually after some drastic up (the drastic move establishes the pennant pole and that nearly vertical move makes its flag). A continuation will indicate a bullish trend will be on. In this case it is advisable to buy call options only. It is worth doing after you see the pennant is forming. You should always keep in mind prices usually travel very fast after they brake a consolidation area of some continuation pattern.

The best thing about a pennant as an indicator is the fact you only have to measure the move in order to get the continuation pattern confirmation.

So, as soon as you get used to pennants, you will see they are a great tool which helps you spot continuation patterns. An as soon as they are spotted, get ready for buying call options.

More related articles:

 15 Minute Binary Options Strategy
It is not always easy to find a trading style or strategy which works for you. In fact, for most traders the right approach is unique to them simply because everyone has different risk factors. The...
 15 Minute Binary Options Strategy
Sometimes it can be too complicated to find out a suitable strategy to apply, specifically when it refers to the binary options dealing activity. We do our best to set up a credible fifteen minutes...
 3 Profitable Ichimoku Strategies Tradinformed
Ichimoku trading strategies are simplified with no grounded analysis or judgement required. It is considered to be a trading pattern designed in Japan. The system has been created to help market pl...
 30 Seconds Binary Options Strategy
More brokers are starting to offer the possibility of trading on the binary markets in just half a minute. Until recently, one minute was seen as the fastest possible trade, however this is now cha...
 30 Seconds Binary Options Strategy
Options operating is the same as placing bets in the online financial operating – here you win everything or lose it all. But there are also some distinctions in these two activities. In opti...
 5 Day Trading Secrets
The day trading market method is basically concerned with short lasting positions, generally, a trader buys and sells stocks simultaneously. The stock options trading strategy implementation instru...
TOPICS: Pennants  Continuation 
Binary Option Auto Trading

 

TRADE WHILE YOU SLEEP!

SMART AUTOMATED TRADING SOFTWARE

 

100% Secure