What is a pennantWhat is a pennant? A pennant is a triangular continuation ... More?
A pennant is a triangular continuation patternWhat is a continuation pattern? A continuation pattern is ... More formed after a strong movement. It is used in to help make decisions.
How do pennant patterns form?
After a sharp move in a particular direction, there is neither significant buying nor selling and the priceWhat are value stocks? A value company is a company that app... More is temporarily held in a consolidation pattern.
Because of this indecision, a more or less symmetrical triangleA triangle is a chart pattern that forms when neither the bu... More is formed. This is a pennant pattern.
The priceWhat is price? The price is the measure of the value of good... More eventually breaks out of this pattern, continuing the original .
The bullish pennant and bearish pennant
A pennant forms during an and indicates that the price may continue to go up. It gives you the chance to make a trade, hopefully profiting from a second big price rise.
The chart below shows an example of a bullish pennant:
