Pennant Pattern Pattern
The pennant is a short-term continuation pattern that forms after a strong directional move (the flagpole), followed by a small symmetrical triangle. It reflects a brief pause where buyers and sellers rebalance before the prior trend often resumes. Pennants can form in both rising and falling markets.
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Key Characteristics
Trading Tips
- ✓Wait for a close outside the pennant boundary before acting
- ✓Use increasing volume on breakout as confirmation
- ✓Set invalidation near the opposite side of the pennant
- ✓Treat measured moves as planning tools, not guarantees
Signal Strength & Reliability
Moderate to Strong, typically stronger when the prior trend is clear and breakout volume confirms
Pennant Pattern FAQs
Common questions about the pennant pattern pattern
Both are continuation patterns after a strong move. Flags usually have parallel boundaries, while pennants have converging boundaries that form a small triangle.
Pennants are usually short-term structures. On daily charts, many complete within one to three weeks. If the consolidation drags too long, it may evolve into a different pattern.
Use confirmation rules: close beyond the boundary, rising volume, and alignment with the higher-timeframe trend. Avoid entries based only on intrabar wicks.
Related Patterns
All Chart Patterns
Disclaimer: Wyck provides technical analysis for educational purposes only. This is not financial advice. All trading involves risk. Always consult a licensed financial professional before making investment decisions.
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