Pennant
A pole followed by a small symmetrical triangle — a tight continuation coil that resolves in the direction of the prior thrust.
A Pennant combines a strong directional pole with a brief symmetrical triangle consolidation (converging trendlines). Unlike flags, the consolidation here is a contracting wedge rather than a parallel channel.
Breakout from the triangle in the direction of the pole confirms continuation. Target = pole length projected from the breakout. Volume should drop during the pennant and surge on the break.
Example
EUR/USD drops 120 pips in two hours (pole), then compresses into a 15-pip symmetrical coil over the next 30 minutes. A break below the lower converging line triggers another 120-pip measured-move target.
Related Terms
Bear Flag
A sharp downward pole followed by a tight, slightly upward-drifting channel — a continuation setup that resolves lower once the flag breaks.
BeginnerBull Flag
A sharp upward pole followed by a tight, slightly downward-drifting consolidation channel — a high-probability continuation setup in strong uptrends.
BeginnerContinuation Pattern
Any pattern that forms mid-trend and resolves in the same direction as the prior move — flags, pennants, and triangles are the most common.
BeginnerFlag
A brief rectangular consolidation against the prior trend, bounded by parallel trendlines — a high-frequency continuation setup.
BeginnerMeasured Move
A technique projecting a price target by duplicating a prior swing move from a breakout or consolidation point.
BeginnerSymmetrical Triangle
Converging trendlines with lower highs and higher lows, signalling a coil of indecision that typically breaks in the direction of the prior trend.
BeginnerWedge
Two converging trendlines that both slope in the same direction — the Rising Wedge is bearish, the Falling Wedge is bullish.
Beginner