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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

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Strong initial move creates the flagpole
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Consolidation forms a small, converging triangle
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Pattern duration is typically short (a few sessions to a few weeks)
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Volume often contracts inside the pennant
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Breakout commonly follows the direction of the prior move
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Measured move target often uses flagpole length
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False breakouts can occur without volume confirmation
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Works best when market structure is already trending

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: Charted 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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