Pennant Pattern
A pennant is a continuation pattern similar to a flag, but instead of a rectangular consolidation, price forms a small symmetrical triangle after the pole. Think of it as a triangle on a stick.
Understanding the Concept
Pennants work like flags—sharp move, brief pause, then continuation. The difference is the consolidation shape. Pennants are tighter and typically resolve faster than flags. Volume decreases during formation and explodes on breakout. The target is still the pole's height added to breakout. These patterns are common during strong trends because buyers/sellers don't want to miss the next leg. Trade them like flags: wait for breakout, confirm with volume, target the measured move.
Real-World Example
After Bitcoin pumps $5,000 in two days, price consolidates in a tight pennant for three days. Volume dies down. When BTC breaks out of the pennant to the upside, traders target another $5,000 move.
How Strykr Helps
Strykr's AI monitors Pennant Pattern signals across 5,000+ assets in real-time. Get instant alerts when significant patterns emerge, with context about market conditions and confluence factors.
Try Strykr Free