Like FX, virtual currency is a market in which many professional traders are active. We have compiled an article about the pennant, which is a consolidation pattern that often appears on the chart, so if you are aiming to become a trader, you may want to refer to it.
What is a pennant?
A pennant is the tendency that the market shows after a violent up-and-down trend. This will gradually converge the market and gradually shift to the range market. This market is gradually quieting down, so you can’t expect big price movements. This state is called a pennant.
Source : Tradingview BTC/USD 1hour leg 07-2023
A pennant occurs during an uptrend and a pennant during a downtrend. This pennant triangle is basically said to be a trend continuation chart pattern, and it is said that this shape will continue the trend next time. A rising pennant moves the chart upwards, and a falling pennant moves the chart downwards.
nature of the market
Before talking about pennants, you must also know the market. This is the same for Forex, cryptocurrencies, and stocks, but the market consists of contraction, spread, and direction. In the case of a pennant, it is a chart pattern that shows when a direction ends and transitions to contraction.
contraction
The systole indicates a range market. This is a market that just moves up and down between fixed upper and lower bounds. This market is equivalent to the time of accumulating for the next direction. After this, the market gradually becomes rougher and spreads.
Source : Tradingview BTC/USD 1hour leg 07-2023
diffusion
Diffusion ends the range market, and the price movement gradually begins to become rough. Gradually start swinging up and down, and eventually the next direction will come out. In the case of a trend follower, it can be said that this is the timing to enter by predicting whether it will go up or down at this timing.
Source : Tradingview BTC/USD 1hour leg 07-2023
direction
Once the diffusion is over, a trend will occur and a violent price movement will occur. For traders, this direction is the market where the largest price range can be targeted. At this time, you can aim for the biggest profit, so it is a good time to play.
Source : Tradingview BTC/USD 1hour leg 07-2023
Open an account
In order to actually start investing, you must first open an account. MEXC allows you to open an account for free, so you can easily open an account. The article below explains how to open an account, so please refer to it.
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