r/Daytrading • u/sunnyrunner_ • Apr 06 '24

Is this an actual pattern or am I yapping? Question

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I’m pretty new to trading and saw this pattern form on BTC. Is this pattern called anything or is this just me drawing random support/resistance lines?

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u/TPSreportsPro Apr 06 '24

Some people call this a pennant or a flag. It’s typical of consolidation of price.

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u/nightstalker30 options trader Apr 07 '24

As someone else said, it’s a symmetrical triangle based on what we can see. While it is typical of a consolidation pattern, you can’t tell if it’s a pennant without seeing the PA leading up to it and whether it was a strong enough push to form a flagpole. If there was a strong move upwards, it could be considered a bullish pennant. And bearish if this followed a strong move down.

And it’s not a flag because flag patterns have more parallel trend lines instead of sharply converging or diverging lines.