Pennant
neutral · continuation pattern
A pennant resembles a flag but with converging trendlines instead of parallel ones — essentially a small symmetric triangle attached to a flagpole. Pennants resolve in the direction of the prior move and complete in 5–15 bars.
Formation rules
- Sharp directional flagpole
- Small symmetric-triangle consolidation
- Volume contracts during pennant
- Breakout in the flagpole's direction
How to trade it
Identical entry/exit logic to flags: breakout in the flagpole direction with stop on the opposite side of the pennant. Measured move = flagpole height added to breakout.
Common pitfalls
- Pennants in choppy regimes have no edge
- Volume is critical
Statistical context
Bulkowski: similar success rates to flags. Pennants and flags are often combined in textbooks but the pennant's converging shape adds a small directional ambiguity.
Related patterns
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