Pennant
Also known as: Pennant Flag
A small symmetrical triangle right after a strong impulse. Price usually continues in the direction of the preceding impulse.
How it forms
A steep impulse (flagpole) is followed by a short, converging consolidation with falling volume. Unlike the flag, the pennant tapers to a point rather than running parallel.
How it is typically traded
On a break out of the pennant in the direction of the prior impulse (up after an up-move, down after a down-move).
The length of the flagpole, projected from the breakout point.
On the opposite side of the pennant.
Where & when – and the limits
A very short-term continuation pattern (often just a few candles). Without a clear prior impulse it is just a small triangle with no meaning. Direction follows the trend.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
Learn more in the academy