Pennant Brkout

The Pennant Breakout indicator plots each pennant formation identified as well as the up or down breakout from each pennant. It plots whichever breakout comes first if it occurs within the specified BarsPast input value. Pennant extensions are displayed as points, while the breakouts are plotted as crosses.

Description

A pennant is a type of continuation pattern where a period of consolidation is followed by a breakout movement in the same direction as the initial large movement.

If a new pennant pattern is identified within the BarsPast value of the previous pennant, the new pennant replaces the previous one. If the DrawLines input value = true, the previous pennant is not removed. In case there is a breakout from the most recent pennant within BarsPast value, the pennant lines are drawn in a wider width in order to distinguish this pattern from any other pennants nearby.

Default Inputs

Length( 7 ) sets the number of bars used in the pennant calculations.

MaxConsolIndex( 1.5 ) sets the index value to adjust tightness of the consolidation pattern.

'BarsPast( 5 ) sets the number of bars past the price pattern to identify a breakout.

DrawLines( true ) – set true to draw lines for the pennant.

DrawExtensions( true ) – set true to draw extensions of the pennant lines.

Color1( red ) sets the first color used to identify pennant patterns.

Color2( magenta ) sets the second color used to identify pennant patterns.