Hello, i’m surfing new babypis new school. Can you please explain the different between BP and ST ?
BP
ST http://www.babypips.com/school/triangles.html
I see both have same point :
But looklike BP will continue with an uptrend, but ST maybe uptrend or downtrend.
you’re right.
bullish pennant, as the name suggests, has the bias of breaking upwards…
symmetrical triangle is bilateral… there is no bias in the breakout. it can also come from either a downtrend, uptrend, or from a “range”.
But i see two form too similar. Both have an uptrend before and “Higher lows and Lower highs”. How to know there is a BP or ST ?
BP - comes after a strong upmove / uptrend.
symmetrical triangles - form after a period of consolidation (ranging market).
thats how I interpret is at least.
It really doesn’t matter, the important point is that you have identified a contracting pattern of consolidation from which price should breakout. There is a higher percentage probability that price will continue in the same direction, but it could also reverse, there are no garantees.
In most cases it’s prudent to let price break then get in on the pullback.