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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Download ChartedKey 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: 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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