Community Forex Questions
What is the difference between a flag and a pennant?
A flag and a pennant are both continuation patterns in technical analysis, but they differ in shape and formation.
A flag forms after a sharp price movement, known as the flagpole. It appears as a small, rectangular channel that slopes slightly against the prevailing trend. For example, in an uptrend, the flag tilts downward; in a downtrend, it tilts upward. Flags usually form over a short period, and their parallel trend lines give them a box-like appearance.
A pennant, on the other hand, also follows a strong flagpole move but forms a small symmetrical triangle instead of a rectangle. Its trend lines converge, indicating a brief consolidation period before the trend resumes. Pennants are typically shorter in duration than flags and often show declining volume as they develop.
In both cases, the breakout usually occurs in the same direction as the original move, with a price target often estimated by adding the length of the flagpole to the breakout point.
The main difference lies in their shapes: a flag is rectangular with parallel sides, while a pennant is triangular with converging sides. Both reflect a pause in the trend rather than a reversal.
A flag forms after a sharp price movement, known as the flagpole. It appears as a small, rectangular channel that slopes slightly against the prevailing trend. For example, in an uptrend, the flag tilts downward; in a downtrend, it tilts upward. Flags usually form over a short period, and their parallel trend lines give them a box-like appearance.
A pennant, on the other hand, also follows a strong flagpole move but forms a small symmetrical triangle instead of a rectangle. Its trend lines converge, indicating a brief consolidation period before the trend resumes. Pennants are typically shorter in duration than flags and often show declining volume as they develop.
In both cases, the breakout usually occurs in the same direction as the original move, with a price target often estimated by adding the length of the flagpole to the breakout point.
The main difference lies in their shapes: a flag is rectangular with parallel sides, while a pennant is triangular with converging sides. Both reflect a pause in the trend rather than a reversal.
A flag and a pennant are both short-term continuation chart patterns, but they differ in shape and formation.
A flag appears as a small rectangular channel that slopes against the prevailing trend. It forms after a sharp price move, with parallel trendlines marking its boundaries.
A pennant also follows a strong price movement but is shaped like a small symmetrical triangle. Its trendlines converge, showing a narrowing price range before the breakout.
Both patterns indicate a brief consolidation before the trend resumes, often accompanied by declining volume during formation and rising volume at breakout. The main difference lies in their structure: flags have parallel sides, while pennants have converging lines. Both are considered reliable in technical analysis.
A flag appears as a small rectangular channel that slopes against the prevailing trend. It forms after a sharp price move, with parallel trendlines marking its boundaries.
A pennant also follows a strong price movement but is shaped like a small symmetrical triangle. Its trendlines converge, showing a narrowing price range before the breakout.
Both patterns indicate a brief consolidation before the trend resumes, often accompanied by declining volume during formation and rising volume at breakout. The main difference lies in their structure: flags have parallel sides, while pennants have converging lines. Both are considered reliable in technical analysis.
Aug 12, 2025 02:33