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Pennant

The Pennant is similar to Flag but the flag portion has a small triangular shape. This is a strong continuation pattern.

PolePENNANTPennant: Strong rise → Small converging triangle → Continue rise

Pattern Details

Category

continuation

Success Rate

82%

Average Move

+11%

Duration

1-3 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Flagpole: Strong initial trend
  • 2
    Pennant portion: Small converging triangle
  • 3
    Breakout: Continuation of prior trend

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter position when price breaks out of triangle
  • ✓
    Volume decreases during triangle formation
  • ✓
    Target = Length of flagpole
  • ✓
    Stop loss on opposite side of triangle
Trading Tips
  • Triangle should be small and converge quickly
  • Similar to Flag but with triangular shape
  • Earlier breakouts tend to be more effective

Statistics

Breakout Statistics
Bullish Breakout68%
Bearish Breakout82%
Performance Metrics
Average Rise+11%
Average Decline-11%
Pullback Rate8%