Bitcoin is forming a Pennant flag formation, tomorrow it will be STRONG UP or DOWN!

Bitcoin is forming a clear Pennant Flag formation, and tomorrow will be the decision if we break out to the upwards or downwards. 

What is a Pennant flag formation? 

The pennant forms what looks like a symmetrical triangle, where the support and resistance trendlines converge towards each other. The pennant pattern does not need to follow the same rules found in triangles, where they should test each support or resistance line several times. Also, the direction of the pennant is not as important as it is in the flag; however, the pennant is generally flat. 

General Ideas 

While the construct of the pause in the trend is different for the flag and pennant, the attributes of the chart patterns themselves are similar. It is vital that the price movement prior to the flag or pennant be a strong, sharp move. 

Typically, these patterns take less time to form during downtrends than in uptrends. In terms of pattern length, they are generally short-term patterns lasting one to three weeks, but can be formed over longer periods. 

The volume, as with most breakout signals, should be seen as strong during the breakout to confirm the signal. Upon breakout, the initial price objective is equal to the distance of the prior move added to the breakout point. For example, if a prior sharp up movement was from $30 to $40, then the resulting price objective from a price breakout of $38 would be $48 ($38+$10). 

Read more: Analyzing Chart Patterns: Flags And Pennants http://www.investopedia.com/university/charts/charts6.asp#ixzz4nklA0zOm 

Yours Truly,

CryptoPaul