Pennant
Definition
A sharp move then a tiny symmetrical triangle — a brief pause before continuation.
Psychology
A quick pause after a strong move, then price usually continues the same way.
Real-life analogy
💡 A runner catching their breath mid-sprint before taking off again.
Expected direction
either
Entry / Stop / Target
Entry: On a breakout in the direction of the prior move. · Stop: Opposite side of the pennant. · Target: Pole height projected from the breakout.
Historical behaviour
Brief and reliable within strong trends.
Illustrative success rate
~58-66% in trend direction · Medium reliability
Common beginner mistakes
- • Confusing with a full triangle
- • Trading the chop
Quick quiz — did you understand?
1. Is the Pennant generally considered bullish, bearish, or neutral?
2. After a confirmed Pennant, the expected direction is usually:
3. Which is a common beginner mistake with the Pennant?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.