Pennant

  • Appears in a downtrend or an uptrend
  • Formed as a short, sloping or non-sloping, triangle bounded by two converging trend lines
  • Usually appears after a pole formation, which is a steep move up or down of stock prices
  • Characterized as a temporary pause or a correction of stock prices before continuing its prior trend
  • Usually has a higher failure rate to breakout/breakdown than a Pennant pattern
  • Usually has a lower rise from a breakout and a higher decline from a breakdown than a Pennant pattern
  • Volume is decreasing
  • Effect 1: Stock prices continue going up if the prior pole formation is an uptrend
  • Effect 2: Stock prices continue going down if the prior pole formation is a downtrend
Pennant