Pennant patterns are very similar chart patterns to flag patterns, but with narrowing trend lines in the consolidation phase rather than parallel trend lines. Pennant patterns are found frequently within trends, and are continuation signals. Pennant patterns are marked by a big price move followed by a resting period with narrowing price action. This narrowing price action gives the pennant pattern the appearance of a pennant on a flagpole.
There are two primary pennant patterns, the bull pennant and the bear pennant. Bull pennant patterns are upside continuation setups, while bear pennant patterns are downside continuation setups.
Bull Pennant – Bull Pennant Pattern
Bear Pennant – Bear Pennant Pattern
Click on bull pennant and bear pennant pictures to learn more about each pattern.
