What is a bull pennant?
Pennant is a bullish pattern in the stock market or any other trading market that indicates that the stock is about to move higher
Bull Pennant Pattern
Here’s how the pennant pattern should look like
- First, there is a sharp market move, resembling almost a straight line (flagpole) on heavy volume.
- Prices pause for 1-3 weeks on light volume, forming a consolidation pattern.
- Prices break out and the trend resumes in the direction prior to the pennant or pennant on heavy volume.
The Bull Pennant pattern usually appear in the middle of a market move and, therefore, the move after the pennant will travel the same distance of the move preceding the pattern.
The Bull Pennant
The pennant is shown below, indicated by 2 converging trendlines, resembling a symmetrical triangle.
