Flag pattern or flag and pennant pattern

The flag and pennant patterns (flag pattenr) are commonly found patterns in the price charts of financially traded assets (stocks, bonds, futures, etc). The patterns are characterized by a clear direction of the price trend, followed by a consolidation and range bound movement, which is then followed by a resumption of the trend.

Flag pattern – Bull flag pattern / Bear flag pattern

The bull flag pattern is encompassed by two parallel lines. These lines can be either flat or pointed in the opposite direction of the primary market trend. The pole is then formed by a line which represents the primary trend in the market. The pattern is seen as the market potentially just taking a “breather” after a big move before continuing its primary trend. The chart below illustrates a bull flag pattern:

Bull Flag pattern and pennant shape






Pennant pattern

pennant meaning and pennant shape are like a flag that is held upside down. The pennant pattern is identical to the flag pattern in its setup and implications; the only difference is that the consolidation phase of a pennant pattern is characterized by converging trend lines rather than parallel trend lines. The image below illustrates.


pennant shape Technical analysis pennant meaning







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*This guide is mainly based on wikipedia’s texts & images. We thank the authors. for their great efforts.