Pennant
Chart PatternsA small symmetrical triangle that forms after a sharp move (flagpole), representing a brief pause before the trend continues. It looks like a tiny converging triangle on a pole.
What Is a Pennant?
A pennant is a short-term continuation pattern that forms after a sharp price move (the flagpole). After the initial surge, price consolidates briefly in a small Symmetrical Triangle shape with converging trendlines. The pennant typically lasts only 1 to 3 weeks on a daily chart before price breaks out in the same direction as the flagpole.
Bullish and Bearish Pennants
A bullish pennant follows a sharp rally. On EUR/USD, if price surges 150 pips and then forms a tight triangular consolidation, the expected resolution is an upward breakout. A bearish pennant follows a sharp decline and resolves with a downward Breakdown.
Enter on the breakout in the flagpole's direction. Stop loss goes on the opposite side of the pennant. The target is the length of the flagpole projected from the breakout point.
Pennant vs. Flag vs. Triangle
A pennant has converging trendlines (small triangle). A Bull Flag or Bear Flag has parallel trendlines (small channel). A full Symmetrical Triangle is larger and takes longer to form. All three are continuation patterns with similar measured-move targets.
The pennant should be compact with decreasing volume. If the consolidation lasts too long or the volume does not contract, the pattern may be transitioning into a larger triangle or reversal formation rather than a simple pause.
Related Terms
Bull Flag
A bullish continuation pattern where a sharp rally (the flagpole) is followed by a brief downward-sloping consolidation (the flag). Price typically breaks upward to continue the trend.
Bear Flag
A bearish continuation pattern where a sharp decline (the flagpole) is followed by a brief upward-sloping consolidation (the flag). Price typically breaks downward to continue the trend.
Symmetrical Triangle
A continuation pattern where converging trendlines connect lower highs and higher lows, creating a narrowing range. It typically breaks in the direction of the prior trend.