![]() The bull pennant breakout signals a continuation of the prevailing uptrend. If it lasts longer than 3 weeks, you can carefully consider it to be a symmetrical triangle or rising wedge instead. The pattern normally lasts anywhere from one to three weeks, and during this time, prices will fluctuate within the trading range. You will also see decreasing volume throughout the consolidation period, as traders become uncertain of the direction of the market. You will see this pattern occur frequently during major uptrends, as the market consolidates before continuing its upward movement. It may slope up or even look horizontal, but it often slopes against the leading trend. It's important to note that the pennant doesn't necessarily slope down. This formation often has a slight downward slope, and the price action moves in a narrowing range between the two trend lines. ![]() The bull pennant stock pattern is made up of two converging trendlines, with the lower trendline representing support, and the upper trendline representing resistance. When this happens, you can expect a continuation of the previous uptrend. This indicates that the momentum is starting to pick up again, and that more buyers are stepping in to take over the market. The breakout from the pennant to the upside occurs when the price action begins to rise, and eventually breaks up through the top trendline. It represents a pause in the upward momentum, where traders take a break to re-evaluate the current market situation. You will see this formation when prices stall out and start moving sideways after a strong uptrend. The pennant shape is created by the price gradually decreasing as it moves from the high of the flagpole to the low of the consolidation period. It is created by a sharp increase in price, followed by a period of consolidation. The flagpole is the vertical distance between the highest peak and lowest trough. It consists of two parts: a flagpole and a pennant. A bull pennant pattern is a bullish continuation pattern that appears on a stock chart as a down-sloping triangular flag.
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