I would just like to clarify what the difference between pennants and symmetrical triangle patterns; I am quite confused because in my eyes, they look perfectly identical.
Whereas pennants may confirm a breakout towards the direction of the trend’s continuation, symmetrical triangles confirm a possible breakout from either the direction of the market.
As a beginner trader, I find it very confusing.
How do I identify a pattern forming a perfect triangle, whether it is a pennant or a symmetrical triangle?
Pennants seem to be just shorter duration than symmetrical triangles on the same time-frame. A viable pennant could be as little as 3 or 4 bars/candles: a typical symmetrical triangle will probably have 20+ bars. A classic symmetrical triangle has a horizontal centre-line, pennants can point upwards or downwards.
In both cases, the most probable outcome is continuation of trend from which price entered the pattern. (if there was a trend in the first place)
Oh, I have never really considered that pennants may point upwards/downwards since I have not yet witnessed it myself. Thank you for pointing this out, very much appreciated!