Pennant Chart Pattern — How to Spot and Trade It
7/6/2026
A sharp move then a tiny symmetrical triangle — a brief pause before continuation.
In plain words
A runner catching their breath mid-sprint before taking off again.
What the classic books say
The Pennant is a continuation pattern with reference reliability Medium and illustrative behaviour of ~58-66% in trend direction (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Brief and reliable within strong trends.
Level by level
Beginner
A quick pause after a strong move, then price usually continues the same way.
Intermediate
A short volatility contraction after an impulse; continuation in the prior direction is typical.
Advanced
Similar to a flag but with converging lines; volume should dry up then expand on the break.
Trade plan (educational template)
- Entry: On a breakout in the direction of the prior move.
- Stop-loss: Opposite side of the pennant.
- Target: Pole height projected from the breakout.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Confusing with a full triangle
- Trading the chop
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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