Same flagpole, same continuation logic — but the pause after it converges to a small point instead of staying parallel, and traders love to claim it marks the exact midpoint of the move.
Chartists named this one for its small, tapering silhouette — a miniature triangular pennant flying near the top of a flagpole.
The landmark text classifies pennants alongside flags as brief continuation pauses requiring the same genuine flagpole — despite looking like a tiny symmetrical triangle.
Popular trading lore latched onto the idea that flags and pennants mark precisely the halfway point of a move — a rough tendency, oversold into a rule.
Careful traders today use the pole-height measured move as the real target, treating "halfway" as a loose observation, not a formula.
Exactly like a flag, a pennant needs a genuinely sharp, high-volume move beforehand. Without it, a small converging triangle is just a small symmetrical triangle — no pole, no pennant.
Unlike a flag's parallel channel, a pennant's two lines converge toward each other like a miniature symmetrical triangle — but because a real pole already set the direction, it almost always resolves continuing the pole, unlike an ordinary symmetrical triangle.
Popular lore claims flags and pennants mark exactly the midpoint of a move — a real, mild tendency in some data, wildly overstated in most retail commentary. The pole-height measured move remains the actual target, same as for a flag.
A near-vertical push past the old 2017 high was followed by a brief, tightly converging consolidation, before the climb resumed toward $20k.
Amid the fastest bear market on record, a near-vertical leg down was followed by a brief, tightly converging pause before the decline resumed — a textbook bearish pennant compressed into days.
A sharp rally is followed by a small triangle-shaped pause, both trendlines visibly converging over just a few sessions. Price then breaks above it, resuming the climb. What is this?
A small converging triangle forms after an ordinary, gradual grind higher — not a sharp move. A trader plans to hold for the "halfway point." What's wrong with this plan?
A genuine flagpole forms, but the small triangle after it drags on for three weeks and widens rather than tightening. Is this still a valid pennant?
A pole and its tapering pause, watched tick by tick on the left — and the mark it leaves in the ledger on the right. A confirmed bullish pennant, a confirmed bearish pennant — and a small triangle that never had a real pole behind it.
A move, and a tiny triangle after it. Judge whether a genuine flagpole preceded it — then call it: trade the resume direction, or pass (no real pole).
The classic error is treating "the halfway point" as a formula rather than a loose tendency. The discipline is mechanical: confirm the genuine flagpole first, and measure the actual pole height for your target instead of eyeballing a midpoint.
A pennant is a flag wearing a tighter silhouette — the same pole, the same discipline, the same skepticism toward folklore. Confirm the pole, respect the taper, measure the move — never trust "halfway" alone.
A small sail catches the same wind as a large one.