Forex: the pennant
The pennant, better known as brushes, is a figure in the Forex continuously indicating the movements of the trend in place, both downhill ( Bear pennant ) and rising ( bull pennant ) and are very reliable.
The Bear pennant is a figure very similar to a bearish rectangle.
The trend lines that mark the bearish pennant tend to converge with each other and just this indicates that the levels of minimum and maximum with respect to each spark plug is getting closer and closer together.
If this figure occurs can also set a goal, projecting downward the distance between the beginning of the downward movement and the lowest point reached by the figure of the pennant.
The Bull is the opposite of the pennant pennant Bear.
The lines that contain the trend of the figure tend to converge, setting the stage for a sharp rise in the trend, so instead you can set a target projecting upward the distance between the beginning of the movement and the point of maximum , reached the figure of the bull pennant.
Looking at this type of graphics you must consider the volume, which in the early stages of formation of a certain size pennants which tends to decrease as it takes shape the figure of the pennant.
There is no ideal timeframe to detect a pennant, but it is advised that you use daily or weekly charts to get an idea of developments in the more general trends.
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