Bull Pennant

The Bull Pennant is similar to the bull flag but takes the form of a small symmetrical triangle after a sharp upward surge. Key features:

• A strong pole: steep rally with heavy volume.
• A pennant: converging trendlines sloping slightly or sideways, resembling a mini symmetrical triangle.
• Volume usually contracts inside the pennant.
• Breakout above the upper trendline signals continuation.

The bull pennant shows brief consolidation after explosive buying:

• The pole represents strong momentum and aggressive accumulation.
• Traders then pause, producing a tight consolidation where highs are lower and lows are higher.
• The contracting range reflects indecision but not real selling pressure.
• Once buyers regain confidence, the breakout resumes the upward trend.

Bulkowski groups pennants with flags but provides distinct stats:

• Upward break frequency: ~58–63%.
• Failure rate: ~15%.
• Average rise after breakout: ~34%.
• Target met rate: ~63%.
• Throwback frequency: ~54%.

Pennants tend to be slightly less reliable than flags, but still strong continuation signals.

Entry: Buy on breakout above pennant resistance.

Stop loss: Below pennant support or below the pole’s midpoint.

Targets: Project the flagpole length upward. Secondary = Fibonacci extension levels.

Invalidation: If price breaks below pennant support and sustains.

• Too long: If the pennant drags on, it may become a larger symmetrical triangle with less reliability.
• False breakouts: Low-volume breakouts often fail quickly.
• Sloping pennants: A bullish pennant should slope sideways or slightly downward; upward-sloping ones may act like rising wedges.

• If the pole is weak (no sharp momentum).
• If the pennant drifts upward too strongly.
• If volume expands inside the pennant instead of contracting.