WEBVTT 00:03.080 --> 00:06.870 In this one we're taking a look and flag in Pennant patterns now. 00:06.980 --> 00:12.880 Flag in Pennant patterns are very similar they will have. 00:13.030 --> 00:14.850 There's two versions of each. 00:14.860 --> 00:22.760 They will have a run higher and then there will be consolidation of one sort or another. 00:22.880 --> 00:27.010 And as I'm sure you can imagine that's what makes the difference. 00:27.270 --> 00:33.630 So in a flag you'll see a small pullback and a bit of a channel and a pennant. 00:33.650 --> 00:39.690 You see more of a triangle after a move higher in a bullish version. 00:39.740 --> 00:44.090 Now there is also the bearish version which is the exact opposite 00:46.980 --> 00:53.220 basically you're looking at a run lower and then a slight pullback in a channel or a run lower in a 00:53.220 --> 00:54.480 triangle. 00:54.480 --> 01:00.300 The beauty of these patterns is that everybody in the world pays attention to him basically and they're 01:00.330 --> 01:04.500 obvious a lot of times they also come with a built in measuring stick. 01:04.500 --> 01:09.890 So what you will see is a pattern like this. 01:10.010 --> 01:16.250 A lot of times people will enter on the brink of the flag and you measure from the run up to the top 01:16.250 --> 01:16.910 of the flag. 01:16.910 --> 01:21.480 If that's ten dollars well you're aiming for ten dollars your stop loss of course is on the other side 01:21.480 --> 01:27.630 of the pattern if that gets broken then it invalidates everything in the Pennant. 01:27.630 --> 01:30.900 Let's just say it's eight dollars on a break Kyra you're looking for eight. 01:30.900 --> 01:34.190 Now of course it works in the same way. 01:34.230 --> 01:42.870 But lower five dollar pull if you will of the flag you break down you're looking to match the length 01:42.870 --> 01:46.600 of the pole six dollar pull on the pennant. 01:46.700 --> 01:48.390 You're looking for six dollars. 01:48.390 --> 01:52.760 It's pretty straightforward and they're very obvious and that's why people like me you just put your 01:52.760 --> 01:57.490 stop loss behind the consolidation pattern and you let it rip. 01:57.490 --> 02:01.000 So with that in mind let's take a look at a few examples I have marked up on the charts. 02:01.000 --> 02:07.930 This is Hyatt and this is a bullish pennant because you can see that we clearly had a downtrend line 02:08.260 --> 02:18.080 and an uptrend line after a run higher this poll if you will is from 38 to 43. 02:18.160 --> 02:23.000 So it was anticipated to be a five dollar run on the breakout. 02:23.020 --> 02:26.100 So we're looking at about forty seven and a quarter. 02:26.380 --> 02:30.030 And you can see that we did in fact hit it took a while to get there. 02:30.220 --> 02:37.590 But we did in fact hit it and in fact most people would have been happy taking profit at the sign of 02:37.800 --> 02:39.300 trouble there and a shooting star. 02:39.330 --> 02:41.470 So you may have missed it by a quarter. 02:41.760 --> 02:48.760 But essentially the same thing nice gap higher over here in Zillow we have a bearish pennant. 02:48.780 --> 02:51.440 You can see it was hit three times there three times. 02:51.430 --> 02:59.280 They're kind of poorly drawn on my part but it is there you can see that the poll was roughly a seven 02:59.280 --> 03:00.270 dollar poll. 03:00.270 --> 03:02.190 So you're looking at 48 dollars. 03:02.220 --> 03:10.250 You hit that rather quick right about here by about four or five days after the fact 03:13.610 --> 03:15.910 Philip Morris formed a bullish flag. 03:15.910 --> 03:20.180 Here you can see we ran higher and then we consolidated slightly pulling back. 03:20.180 --> 03:25.700 So you're looking for the height of the flag eighty seven to ninety two. 03:25.700 --> 03:27.190 So it's five dollars. 03:27.200 --> 03:33.110 We break out during this day five dollars above ninety two and a half is ninety seven and a half and 03:33.110 --> 03:34.700 you can see that we get there. 03:34.880 --> 03:41.220 And of course continued to go higher in here and Google we get a bearish flag. 03:41.270 --> 03:48.470 Nice run lower and then we just kind of consolidate in this channel for a while we gap lower. 03:48.590 --> 03:54.830 And if you had this pattern already marked down on your chart you would have known what to expect on 03:54.950 --> 03:57.180 the move to the downside. 03:57.520 --> 04:04.190 You take this extrapolate it you can see that we did eventually hit the target of about 247 and a half 04:05.030 --> 04:13.550 after this huge move that you know of course did take a couple of months but it was such a large move 04:13.580 --> 04:16.920 that it certainly was extraordinarily profitable. 04:17.030 --> 04:23.900 And again like you know wedgies and triangles these are patterns that show up on all time frames and 04:23.900 --> 04:25.430 they're very popular. 04:25.430 --> 04:33.330 So that you will find that they have an extraordinarily effective rate of return on them.