Pennant after a fall
A sharp fall followed by a short pause inside two lines that close in, forming a small triangle.
Continuation patternsBest on 3M, 6M, 1YAlso called bear pennant
What it shows
A pennant after a fall has a steep drop as the pole and a small converging triangle as the pause.
It is complete when price closes outside the small triangle.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Find a pole: a fall of at least 15% in 20 bars or fewer.
- Find a small triangle after it: 5 to 20 bars with falling highs and rising lows.
- Require the lines to converge.
- Mark complete when a close leaves the triangle.
Starting values: Pole size 15% in 20 bars; Pennant length 5 to 20 bars. These are proposed and will be tuned on real price data before launch.
How to read it
- The steep part is the pole.
- The two converging lines are the pennant.
- The gold dot is the first close outside the pennant.
Status labels you may see
| Label | What it means |
|---|---|
| Pennant forming | Price is inside the lines. |
| Broken down | Closed below the lower line. |
| Broken up | Closed above the upper line. |
What cancels it
A close above the upper line, or a retrace of more than half of the pole.
What traders check next
- Volume inside the pennant and at the break.
- The length of the pennant compared with the pole.
- Whether the break closes outside or only wicks.
Limits
- Many pauses look like pennants.
- Size rules are our own choices.
- A break can fail.
Try it in forecastviz
- Open any ticker and choose Continuation patterns → Pennant after a fall in the left menu.
- Switch between 3M, 6M, 1Y to see how the picture changes.
- Compare with Pennant after a rise and Flag after a fall on the same chart.
Questions
Is it the mirror image of the other pennant?
Yes.
How long does a pennant last?
Short. A long pause is more likely a triangle.
Related trends
Further reading
- Edwards and Magee, Technical Analysis of Stock Trends
- Bulkowski, Encyclopedia of Chart Patterns
- O'Neil, How to Make Money in Stocks
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.