Pennant / 三角旗
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A pattern where a sharp price move (flagpole) is followed by a small symmetrical triangle formation. Similar to a flag as a trend continuation signal, but differs in that it forms a converging triangle rather than a parallelogram. After a brief convergence, price breaks out in the original trend direction.
Enter when price breaks above or below the pennant boundary on a closing basis. While a breakout in the original trend direction is expected, be prepared for a breakout in the opposite direction.
Add the flagpole length to the breakout point from the pennant to determine the price target. The same calculation method as for flags is used.
Place a stop-loss near the opposite side of the pennant. Since pennants are small, a relatively tight stop-loss is possible.
Volume surges during the flagpole, decreases significantly during pennant formation, and surges again at breakout.