Pennant Pattern
A pennant pattern is a technical analysis charting pattern that is used to predict the continuation of a trend. It is formed when there is a consolidation period after a sharp price move. The pattern is made up of two converging trendlines that form a symmetrical triangle. The pattern is considered to be a continuation pattern, meaning that it is used to predict that the current trend will continue after the consolidation period.
History of the Pennant Pattern
The pennant pattern was first described by Charles Dow, the founder of Dow Theory. He used the pattern to predict the continuation of a trend after a period of consolidation. The pattern is also known as a flag pattern, as it resembles a flag when viewed on a chart. The pattern is used by technical analysts to predict the continuation of a trend after a period of consolidation.
Comparison Table
| Pattern | Formation | Prediction |
|---|---|---|
| Pennant | Symmetrical triangle | Continuation of trend |
Summary
The pennant pattern is a technical analysis charting pattern that is used to predict the continuation of a trend. It is formed when there is a consolidation period after a sharp price move. The pattern is made up of two converging trendlines that form a symmetrical triangle. The pattern is considered to be a continuation pattern, meaning that it is used to predict that the current trend will continue after the consolidation period. For more information about the pennant pattern, you can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Head and Shoulders Pattern
- Double Top Pattern
- Double Bottom Pattern
- Rising Wedge Pattern
- Falling Wedge Pattern
- Cup and Handle Pattern
- Triple Top Pattern
- Triple Bottom Pattern
- Symmetrical Triangle Pattern
- Ascending Triangle Pattern
