Continuation - Flags and Pennants
The following is an example of a bearish pennant formation on Tol Brothers. Notice the move after a break at the end of the pennant. Volume was declining into the formation and then began rising after the break.
The following is an example of a bullish pennant on UPS. Again, notice the decrease in volume as the pennant forms and then the increase as UPS breaks out of the formation to the upside.
TradeWithPros has presented just a few chart patterns to help get beginners started. There is much more to price and charting. Look for future education on our site. If you have questions about any chart formation, go to our forum or email us directly.