Does anyone know what it means when the RSI is getting higher but candles are still moving bearish? I have attached an example below
Its called Divergence.
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Not sure I’d give much credence to a pennant that forms on an hourly forex chart within less than 2 days. Although it might work, it acquired its name, reputation, effectiveness and trading tactics from daily stock charts.
Then again, chart patterns should not be seen as just identifying entry levels - opportunity for confirmation of longer-term price tendency, stop-loss placement and profit target are more important and useful than any bell going off on the PC that says Sell now! Sell now! Sell now!
Watched any cop shows lately? All the pattern does is give you a suspect profile that tells the police what sort of people to look out for - age, gender, race, educational level, character traits, etc. Its not someone’s DNA that tells them which door in the entire city to kick down.
So you could put in a sell order where price would confirm the pennant, and set stop and target(s) accordingly. If the order isn’t triggered it wasn’t a pennant.
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A good place to look,
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