Pennant Definition, Meaning & Synonyms

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Day Trading is a high risk activity and can result in the loss of your entire investment. – If the breakout you’ve anticipated occurs with high volume, it’s a good sign that you’ve found a profitable trade. Always keep an eye on volume levels when trading technical patterns.

That’s why you’ll need to use this pattern with other indicators and candlesticks to increase the accuracy of your chart pattern analysis. During this time, the overall market sentiment becomes negative, and long traders tend to cut losses quickly by selling off their positions. You can avatrade review see that these two patterns are similar in terms of characteristics; however, they look slightly different when drawn on a chart. You’ll want to see some bearish candlestick patterns like a shooting star or an engulfing, as well as reversal signals like divergences on MACD and RSI.

• Unlike the flagwhere the price action consolidates within the two parallel lines, the pennant uses two converging lines for consolidation until the breakout occurs.
• Hence, the move higher is classified as flagpole, with a pennant coming on top of it.
• In a bearish pennant, strong negative sentiment causes a market to plummet lower .
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A pennant pattern can be bullish or bearish depending on the direction of the first flagpole, shown below. The flagpole is an initial strong movement to the upside or downside. Either way, the purpose of these triangle flags has essentially remained the same. True, it no longer has that purpose of scaring the enemy, but there is that one about celebrating an achievement. Be it another year around the sun, a football victory, or the success and pride of founding a company, pennant flags are there to convey the right spirit. Some felt pennants or other fabric pennant flags are even seen with a multicolor pattern.

Bear Pennant vs Bear Flag

Pennants share the same weakness with flags, as the prolonged consolidation phase can result in a reversal pattern. For this reason, it is important not to enter the trade before the breakout occurs and to always consult other technical indicators in confirming the breakout. In a bearish pennant, strong negative sentiment causes a market to plummet lower . The sellers that have pushed its price down might then back off and take profit, while bulls sense the potential for a bounce back. In a bullish pennant, strong positive sentiment causes a market to spike higher . The buyers that have pushed the market higher then might back off and take profit, while bears sense the potential for a retracement.

A bullish Pennant, one that performs on an uptrend will result in prices that break higher while a bearish pennant will result in breaking at a lower level. Second, you can notice that the triangle part of the formation usually slopes up in the bearish pennant pattern, while it slightly slopes down or looks flat in the bull one. The bearish pennant formation sometimes looks identical to other trading patterns that resemble a wedge or triangle, such as a rising wedge or ascending triangle. The cover price will then be set at the initial flagpole’s height minus the breakout price.

Can Bear Pennants Break Up?

Hence, the pennant chart pattern is in “draft” mode until the breakout takes place. Following the establishment of a short-term peak, the price action starts to consolidate below the highs. Two converging lines connect the higher lows and the lower highs, until these two intersect. In this case, the breakout must take place, unlike the bull flag where the consolidation within the two parallel lines can take much longer. The bull pennant is a bullish continuation pattern that signals the extension of the uptrend after the period of consolidation is over. Unlike trading other chart patterns, the original range of a pennant is rarely used to plan where to take profit.

The occurrence of this pattern tells us that there was a clear down-trending tendency in place with persistent selling pressure. The ASL fingerspelling provided here is most commonly used for proper names of people and places; it is also used in some languages for concepts for which no sign is available at that moment. Here are all the possible meanings and translations of the word pennant. Purely for Demonstration and Education Purposes, Hence it is a Tutorial to get our wheels turning about possible outcomes. If market structure plays out…hummmm I wouldn’t dare to say this will happen, but if it did, it would be a textbook play.

Fun Pennant Flags

A bearish pennant is part of the so-called continuation patterns. A continuation pattern is usually a sign that a currency pair, stock, or any asset will continue moving in the original trend. Other examples of continuation patterns are ascending and descending triangles and bullish and bearish flags. The bullish pennant is a continuation pattern as it tends to help the existing uptrend extend higher.

However, you should take into account that they can also signal a reversal of the market. The triangular flag pattern is a relatively reliable predictor of future price movements, but there are a few things you need to keep in mind. unicorn financial solution The breakouts perform better during strong downtrends with a taller flagpole and a wider triangle shape. Pennants are considered to be continuation patterns, which means that they signal a continuation of an existing trend.

Triangles are medium-term or long-term patterns that form independent of the prior move. Another difference between the two is that the bearish pennant is a continuation pattern. A symmetrical triangle, on the other hand, does not have a defined outlook.

Examples of pennant in a Sentence

After the short-term peak is in place, the price action starts correcting mildly lower. You can see that the form of this correction is triangular, meaning that EUR/USD created a few lower highs and higher lows. Like with bullish pennants, this causes the market’s price to consolidate. But consolidation can’t last forever, and without enough bullish sentiment to recover, the market turns bearish once more. Once it moves outside of its support line, any sellers who have been holding back jump on – sending it to new lows. A symmetrical triangle is a neutral chart pattern that can offer opportunities both long and short traders depending on which side price breaks out.

Just a few hours after the consolidation had started, it actually ended with a powerful bullish candle that burst through the upper line. ThinkMarkets ensures high levels of client satisfaction with intertrader review high client retention and conversion rates. Harness the market intelligence you need to build your trading strategies. Trade up today – join thousands of traders who choose a mobile-first broker.

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The commissioning pennant is a pennant flown from the masthead of a warship. The history of flying a commissioning pennant dates back to the days of chivalry with their trail pendants being flown from the mastheads of ships they commanded. Today, the commissioning pennants are hoisted on the day of commissioning and not struck until they are decommissioned. Some navies have a custom of flying a “paying off” or “decommissioning pennant,” the length of which often reflects the length of service of the warship.

This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. In addition, pennants were known to be flown, illustrated as a triangular flag containing the same five pointed star and crescent. Any long, narrow, usually triangular flag, as used in naval signal hoists, for a school banner, etc. The pennant winners earn the right to play in MLB’s title round, the World Series. Samantha Silberstein is a Certified Financial Planner, FINRA Series 7 and 63 licensed holder, State of California life, accident, and health insurance licensed agent, and CFA.

Related Terms

Their four pennants won are also the most pennants in league history. A majority of the selections were major league managers at some point, with eight leading their teams to pennants. You might see a pennant flying on a navy ship, being waved in the crowd of spectators at a baseball game, or hanging on a sporty kid’s bedroom wall. A long, tapering flag or burgee of distinctive form and special significance, borne on naval or other vessels and used in signaling or for identification. If you do not agree with any term or provision of our Terms and Conditions you should not use our Site, Services, Content or Information.

Full BioSuzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. This could be a good opportunity to get into Square shares and ride the continuing wave of this stock. The trend is definitely still pointing up and the shares may only be taking a breather before the next move upward.

A long narrow banner with St. George’s cross in the head, and hoisted at the main. Signal pennants are 9 feet long, tapering from 2 feet at the mast to 1 foot. They denote the vessels of a fleet; there are ten pennants, which can be varied beyond any number of ships present. When the pennant is half mast, it denotes the death of the captain. Broad pennant denotes a commodore, and is a swallow-tailed flag, the tails tapering, and would meet, if the exterior lines were prolonged; those of a cornet could not.