Bullish Pennant Pattern
Original schematic showing the guide's principal visual relationships.
Pattern anatomy
A brief converging consolidation after a sharp advance that may resolve in the prior direction.
Upward flagpole → small symmetrical consolidation → close above upper boundary.
How it works
Identify the prior trend first, mark repeated swing highs and lows, then draw only the support, resistance, or neckline justified by those pivots. A pattern remains provisional until price closes beyond its confirmation boundary; visual resemblance alone is not enough.
How to read it
The pennant represents temporary balance after strong demand. Its compact size and short duration distinguish it from a broad triangle.
Confirmation checklist
Confirm a clear impulse before the consolidation, controlled price compression during formation, and a close beyond the continuation boundary. Volume often contracts during the pause and expands on breakout.
Limitations and false signals
Long or volatile consolidations lose the pennant's continuation logic. A lower-bound break invalidates the bullish interpretation.