A hands-on options curriculum covering real trading concepts. Read the lessons, work through examples, and test your knowledge.
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Lesson 3: 6.2: Pennant Patterns
Learn to distinguish Pennants from flags and triangles, and execute high-probability continuation trades.
1. Pennant Structure and Mechanics
A Pennant is very similar to a Flag, but instead of consolidating in a parallel channel, the consolidation occurs inside a tiny symmetrical triangle. It is preceded by a strong flagpole and represents a rapid, high-energy consolidation period.
As the price compresses toward the apex of the pennant, trading volume should contract significantly, reflecting decreasing interest at intermediate prices. A subsequent breakout should be accompanied by a massive surge in volume.
Click to enlargeTechnical Market Structure Blueprint
Interactively map key institutional Price Action patterns. Switch between the 4 technical blueprints below and click the glowing blue hotspots to dissect the market mechanics.
Pattern Technical Explainer
Select any glowing node on the technical chart to inspect the institutional structure details.
KNOWLEDGE RECONNAISSANCE
What is the primary visual difference between a Flag and a Pennant?
More lessons in this module
- 6.0: Introduction to Chart Patterns
- 6.1: Flag Patterns
- 6.3: Triangle Formations
- 6.4: Wedge Patterns
- 6.5: Channel Trading Mechanics
- 6.6: Head and Shoulders Formations
- 6.7: Double Tops and Bottoms
- 6.8: Cup and Handle Pattern
- 6.9: Ascending and Descending Triangle Breakouts
- 6.10: Pattern Failure & Trap Mechanics
Signal Desk is where you practice this on real stocks: real option chains (about 15 minutes delayed), the Trade Check and a paper-trading account that risks no real money. Join to add it, your progress tracking and PDF downloads.