I got 2 questions about the chart patters section in the school:
In this section: Know the 3 Main Groups of Chart Patterns
The figure of the bullish pennant and the symatrical triangle a few figures below seem to be exactly the same: a triangle after an uptrend. The pennant is explained to continue the uptrend as the triangle is explained to potentially move both ways. Can anyone explain this inconsistency?
In the quize i got the question 7:
Which type of chart pattern forms when price consolidates between an upward support line and a downward resistance line?
I answered rectangle as that has an upper and lower support/resistance line, but my answer was wrong as it was told to be the wedge. I dont get this, can anyone explain?
ill try to answer youre questions best i can:
Q1:
i know this can be confusing, but it isnt all that hard if you really think about it. just remember that the triangle takes more time to form than a pennant and therefore is a larger pattern meaning more candlestick are needed. The main difference between them is that a pennant tends to form during either an up or downtrend and usually right after a sharp move whereas the triangles can form after a time of consolidation.
As for Q2:
As the question reads you have a upward supportline meaning its going up and the downward ressistance meaning its going down, so sooner or later the two are going to meet. you re answer the rectangle is both the S and R line staying parallel to eachother so that a different pattern then discussed and i admit it does sound like a pennant or triangle forming but the only answer close to it is a wedge pattern so yeah theres youre correct answer.
