Pennant
a.k.a. Pennants
A small, tight triangle that forms after a sharp move, often before the move continues.
In plain English
A small, tight triangle that forms after a sharp move, often before the move continues.
A pennant looks like a little flag on a pole. First comes the pole: a fast, steep move. Then price pauses in a small triangle where the swings get smaller and smaller, as if the market is catching its breath.
The classic expectation is that the original move resumes once price breaks out of the triangle, in the same direction as the pole. It is a cousin of the flag (whose pause is a small rectangle) and the symmetrical triangle (which is usually bigger and slower).
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