Key characteristics of a Pennant pattern
When looking at a Pennant continuation pattern, you will see the following:
A flagpole: A Pennant pattern always begins with a flagpole, which differentiates it from other types of patterns (such as the symmetrical triangle). The flagpole is the initial strong move preceding the symmetrical triangle.
Breakout levels: There will be two breakouts, one at the end of the flagpole, and one after the consolidation period, where the upward or downward trend continues
The Pennant itself: The Pennant is the triangular pattern formed when the market consolidates, between the flagpole and the breakout. The two converging trendlines form the triangle - the Pennant.
These characteristics can be seen with respect to the Bullish Pennant Pattern
When looking at a Pennant continuation pattern, you will see the following:
A flagpole: A Pennant pattern always begins with a flagpole, which differentiates it from other types of patterns (such as the symmetrical triangle). The flagpole is the initial strong move preceding the symmetrical triangle.
Breakout levels: There will be two breakouts, one at the end of the flagpole, and one after the consolidation period, where the upward or downward trend continues
The Pennant itself: The Pennant is the triangular pattern formed when the market consolidates, between the flagpole and the breakout. The two converging trendlines form the triangle - the Pennant.
These characteristics can be seen with respect to the Bullish Pennant Pattern