Bull Pennant
BullishContinuationBeginnerA sharp rally, a tiny triangle, then the next leg up.
Verdict: SkipBitcoin 4H: 18 trades, won 28%, avg trade −0.6% vs random day +0.4%. Backtest
A sharp, fast rally. That straight line up is the pole.
step 1/6
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | A candle CLOSE above the pennant's upper line (through the pole top and the lower high). |
| Cancelled if | Price trades below the pennant's last higher low before the breakout. |
| Target | Pole height, projected from the breakout |
3 common mistakes
- Calling a slow drift up a pole: the move before it must be sharp and fast.
- Waiting too long: a pennant that drags on past its tip has lost its energy.
- Mixing it up with a flag; the trade is the same, but the lines must converge.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 18 | 28% | −0.63% | +0.38% |
| US large caps (50) · 1D · 2016-2026 | 109 | 46% | +0.99% | +1.69% |
Verdict: SkipNever beat a random entry, and lost money in some markets.
pattern −11%random +6.8%
pattern +108%random +185%