Flag and Pennant Chart Patterns Explained
Learn about flag and pennant continuation patterns, including the flagpole concept and how they differ from each other.
- 7 min read
- For beginners
- Educational
- Lección 5 de 7
- 1Chart Patterns: The Ultimate Guide for Beginners
- 2Head and Shoulders Chart Pattern Explained
- 3Double Top and Double Bottom Chart Patterns Explained
- 4Triangle Chart Patterns: Ascending, Descending, Symmetrical
- 5Flag and Pennant Chart Patterns
- 6What Do you Know About Rising and Falling Wedge Chart Patterns?
- 7Why Chart Patterns Fail: An Essential Perspective?
This lesson explains flags and pennants, short-term continuation patterns that share a common originating structure but differ in their consolidation shape.
This structure has been verified against multiple technical analysis education sources.
The Flagpole
Both flags and pennants are generally preceded by a sharp, near-vertical price move, referred to as the "flagpole" — a strong rally for a bullish setup, or a steep decline for a bearish setup, reflecting a strong momentum move as covered in the earlier candle size and momentum lesson.
The Flag Pattern
Following the flagpole, a flag forms as a small, roughly parallel channel that slopes counter to the prior move — for example, a shallow downward-sloping channel following a bullish flagpole. This connects to the price channel concept covered in the earlier Trend Lines and Price Channels unit.
The Pennant Pattern
Following the flagpole, a pennant forms as a small, symmetrical triangle (converging to a point, similar in shape to the symmetrical triangle covered in the previous lesson, but generally smaller and shorter in duration).
Why These Are Generally Discussed as Continuation Patterns
Both flags and pennants are generally discussed as reflecting a brief pause or consolidation after a strong move, with the prevailing trend commonly discussed as tending to resume once the pattern completes with a breakout in the direction of the original flagpole. As with all patterns in this unit, this is a general tendency, not a guaranteed outcome.
Summary
Both flags and pennants are preceded by a sharp 'flagpole' move, with a flag forming as a small parallel channel sloping counter to that move, and a pennant forming as a small, converging symmetrical triangle. Both are generally discussed as continuation patterns, with the prevailing trend commonly discussed as tending to resume in the direction of the original flagpole once the pattern completes, though this remains a general tendency rather than a guaranteed outcome.
Frequently Asked Questions
The sharp, near-vertical price move (rally or decline) that precedes both flag and pennant patterns.
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