Do nothing. While price stays in the pennant structure, wait until it breaks out.
Once the market breaks out of the pennant we can look to trade in that direction.
Trend lines are a very simple and time tested way to frame the structure of a market to predict where price may test in the future. All a chartist needs is to be able spot and draw a line between at least two data points. They work on any sized chart for any timeframe.
The more experience I gain in the markets reading charts, the simpler my technical analysis and trading rules become. Drawing easy to identify trend lines is one of those tools I use and respect in every chart I analyse. The key tip is that you need to draw trend lines between the clearest to see extreme tops and bottoms. Remember to keep your trading simple.
Cameron Buchanan, a Director and Professional Trader of the International Day Trading Academy