Pennant after a rise
A sharp rise followed by a short pause inside two lines that close in, forming a small triangle.
What it shows
A pennant is like a flag, but the pause forms a small triangle instead of a parallel channel. The lines converge, and the swings shrink.
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 rise 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 up | Closed above the upper line. |
| Broken down | Closed below the lower line. |
What cancels it
A close below the lower 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 rise in the left menu.
- Switch between 3M, 6M, 1Y to see how the picture changes.
- Compare with Pennant after a fall and Flag after a rise on the same chart.
Questions
How is it different from a flag?
A flag has parallel lines. A pennant has converging lines.
How is it different from a symmetrical triangle?
A pennant is small and follows a sharp move. A triangle is larger and does not need a pole.
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.