Continuation pattern · bullish bias
Bullish Pennant pattern
A bullish pennant is a brief consolidation shaped like a small symmetrical triangle that forms right after a sharp rally. Like a flag, it reads as a pause in a strong move rather than a reversal.
How to identify a bullish pennant
- A sharp rally forms the pole.
- A small triangle with converging lines forms just after it.
- The pennant is short-lived and compact compared with the pole.
What confirms it
A close above the pennant's upper line.
What invalidates it
A close below the pennant's lower line.
How traders project a target
Add the height of the pole to the breakout point.
Common mistakes
- Treating a large, slow triangle as a pennant.
- Ignoring the requirement for a sharp move before the consolidation.
- Entering before the breakout with invalidation far away.
Where it appears
Appears in fast trends, often after news or a strong breakout.
Frequently asked questions
How is a bullish pennant different from a symmetrical triangle?
A pennant is small, brief and follows a sharp move. A symmetrical triangle can be larger and does not need a pole.
Should a pennant break quickly?
Usually. The longer it drifts, the less it behaves like a short pause.
Is a bullish pennant a reversal pattern?
No, it is a continuation pattern. It suggests the prior rally may resume.
Related chart patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.