BATUSDT had a significant upward impulse from the $0.20 area and is now forming a pennant pattern. A pennant is a technical analysis pattern that occurs when the price of an asset is consolidating within a symmetrical triangle pattern after experiencing a significant price move.
The pennant is characterized by two converging trend lines that form a triangle shape, with the upper trend line representing the resistance level and the lower trend line representing the support level. This pattern often indicates a period of consolidation before the price moves in the direction of the previous trend.
If the price loses the support level of the pennant, according to Plancton's strategy, traders may consider setting a short order. This would be based on the assumption that the price may continue to move lower, potentially breaking through additional support levels.
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Follow the Shrimp 🦐
Keep in mind.
The pennant is characterized by two converging trend lines that form a triangle shape, with the upper trend line representing the resistance level and the lower trend line representing the support level. This pattern often indicates a period of consolidation before the price moves in the direction of the previous trend.
If the price loses the support level of the pennant, according to Plancton's strategy, traders may consider setting a short order. This would be based on the assumption that the price may continue to move lower, potentially breaking through additional support levels.
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Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.
- ⚫️ Black structure -> <= 1h structure.