What is a pennant pattern?

Pennants are continuation patterns where a period of consolidation is followed by a breakout used in technical analysis. It's important to look at the volume in a pennant—the period of consolidation should have lower volume and the breakouts should occur on higher volume.

What does a penny continuation pattern look like?

The pattern looks like a small symmetrical triangle called a Pennant, which is made up of numerous forex candlesticks. Depending on the direction of the movement, Pennant patterns are usually described as being bearish or bullish. When looking at a Pennant continuation pattern, you will see the following:

What is a pennant in technical analysis?

A pennant is a continuation pattern in technical analysis formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines - the pennant - followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole.

What is the difference between a pennant and a symmetrical triangle?

There’s a big difference between a pennant and symmetrical triangle: Pennant chart patterns are short term and are preceded by an extended price run (similar to a flagpole). Symmetrical triangles, on the other hand, are often longer-term patterns independent of preceding patterns (hence, no flagpole).