What Is a Pennant Chart Pattern in Technical Analysis?

Pennant is a chart pattern that indicates the continuation of the trend. It is formed when there is a long movement either upward or downward, followed by a consolidation that has an upper limit and lower limit that can be connected with diagonal lines. When the diagonal lines that connect the upper and lower limits converge, the diagram formed looks like a symmetrical triangle. The minimum price target of a Pennant breakout is equal to the Flagpole projected from the breakout point.

pennant definition

The Pennant is often interpreted as a brief pause occurring in a strongly trending market and it is considered that the movement following the completion should duplicate the move preceding completion of the pennant. The initial price that forms the first flagpole, should be supported with large volume. When the price breaks out of the pattern it usually continues in the same direction, showing no signs of confusion as to where it should be. A Pennant is usually a method of pattern trading based on a continuation pattern. Center means the center for educational performance and information created in section 94a.

She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. Whether you’re a teacher or a learner, Vocabulary.com can put you or your class on the path to systematic vocabulary improvement. Race with the unpredictable Giants, this year’s Dodgers imports didn’t arrive as saviors.

Definitions for pennantpen·nant

A continuation pattern is a chart pattern that leads to the continuation of an existing trend. Pennants, which are similar to flags in terms of structure, have converging trend lines during their consolidation period. A chart pattern resembling a pointed flag, with the point facing to the right, which shows a diminishing variance of price. “Carpet and Upholstery Cleaner” includes, but is not limited to, products that make fabric protectant claims.

The award of pennants, or other marks of recognition, to factories depends upon the existence of agreed production targets for each works. Linking two pennants requires 7 cells and produces 6 cells of garbage whereas linking two binomial trees requires only 6 cells producing 3 cells of garbage. The figure on the right emphasizes the pennants hidden in a full binary tree.

  • The price movement of a breakout can be described as a sudden, directional move in price that is…
  • Determine significant support and resistance levels with the help of pivot points.
  • Or, the consolidation may occur near trendline resistance levels, where a breakout could create a new support level.
  • Investopedia requires writers to use primary sources to support their work.

We rely on reader support and your contribution will enable us to keep delivering quality content that’s open to everyone across the world. Another approach is to first wait until the price breaks out, then look for above-average volume to confirm the breakout. This means that pennants in an uptrend are expected to break out upward and those in a downtrend, downward. The pennant should have weakening volume, followed by a large increase in volume during the breakout. Whether the trend reverses or continues based on the pattern heavily depends on the context of the pattern. A Pennant is basically a variant of a Flag where the area of consolidation has converging trend lines, similar to a Triangle.


For example, traders may watch for relative strength index levels to moderate during the consolidation phase and reach oversold levels, which opens the door for a potential move higher. Or, the consolidation may occur near trendline resistance levels, where a breakout could create a new support level. A chart pattern is a graphical presentation of price movement by using a series of trend lines or curves. Chart patterns can be described as a natural phenomenon of fluctuations in the price of a… Adding teams to the postseason doesn’t increase the tension of pennant races, it diminishes it.

pennant definition

While triangles have swing highs and lows as the price oscillates back and forth, a pennant’s price action will be confined within a range or consolidation that gets even smaller over time. A pennant is a price pattern where the price starts to range and the difference between the peaks and troughs start to decrease, in a horizontal manner and show similar features to a symmetrical triangle. A flag normally used by naval vessels to represent a special condition. Glass cleaner means a cleaning product designed primarily for cleaning surfaces made of glass. Glass cleaner does not include products designed solely for the purpose of cleaning optical materials used in eyeglasses, photographic equipment, scientific equipment and photocopying machines. Pennantsmeans any lightweight plastic, fabric, or other material, whether or not containing a message of any kind, suspended from a rope, wire, string, or other device, usually in series, designed to move in the wind.

Origin of pennant

Continuation patterns indicate a pause in a trend and indicate that the previous direction will resume after a period of time. The winning of a competition, represented by a flag.The New York Yankees have won the American League pennant far more often than any other team. But it was cool; the beginning constant night breeze fluttered the window curtains and swayed the pennants of smoke from the cigars. The sportswriter — or, reporters prefer to think, an editor — squashed the sentences together to turn a pennant prediction into a character judgment. Is a flag serving as an emblem of championship in certain sports. 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.

Although a Pennant will act in a similar nature to a Flag pattern, the actual look of the trend is more like a Triangle pattern. Double-click any word on the page to look it up in the dictionary.


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“They are in the same division as us and we’re in the middle of a pennant race right now,” Syndergaard said Tuesday before the Mets’ 7-2 win … History and discussion of the legendary Curse of the Billy Goat, the Chicago Cubs’ pennant races and World Series games, and baseball’s curses. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

He has authored books on technical analysis and foreign exchange trading published by John Wiley and Sons and served as a guest expert on CNBC, BloombergTV, Forbes, and Reuters among other financial media. DisclaimerAll content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. 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. A breakout is when the price moves above a resistance level or moves below a support level. The price movement of a breakout can be described as a sudden, directional move in price that is… Many traders look to enter new long or short positions following a breakout from the Pennant pattern.

College pennants line the walls, and inspirational phrases hang above the doors. “That’s a huge motivator – we all want to do it for him,” Vincelli told the North Shore News last week, just before the Twins clinched the pennant. Even with that, the C’s have been eliminated from the Northwest Division North first-half pennant chase. In 1920, sixteen-year-old Hank finds his loyalties divided when he is assigned to care for the Giants’ mascot, a wildcat named Bill Pennant, as well as keep an eye on Babe Ruth in Ruth’s first season with the New York Yankees. This work features full rosters, player biographies, statistics, photographs and an appendix of the sportswriters who chronicled the season. Full BioSuzanne is a content marketer, writer, and fact-checker.

On that day the Phillies won their first pennant in 35 years. We had come very close to blowing the pennant race and had to defeat the Brooklyn Dodgers in Ebbets Field in the last game of the regular season to avoid a tie and a best-of- three … The renowned Pulitzer Prize-winning columnist delivers dramatic descriptions of fifteen suspense-filled pennant races from 1908 to 1993, in this insightful look at the drama of America’s pastime. The price target for pennants is often established by applying the initial flagpole’s height to the point at which the price breaks out from the pennant. For instance, if a stock rises from $5.00 to $10.00 in a sharp rally, consolidates to around $8.50, and then breaks out from the pennant at $9.00, a trader might look for a $14.00 price target on the position—or $5.00 plus $9.00. The stop-loss level is often set at the lowest point of the pennant pattern, since a breakdown from these levels would invalidate the pattern and could mark the beginning of a longer-term reversal.

A majority of the selections were major league managers at some point, with eight leading their teams to pennants. Note that the pennants resulting from the binary tree must be reversed beforehand. These example sentences are selected automatically from various online news sources to reflect current usage of the word ‘pennant.’ Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. After losing to Atlanta in last year’s World Series, Houston is 7-0 this postseason, earning the fifth pennant in franchise history and another chance at its second championship. Pedro Grifol, a member of two American League pennant winning and a World Series championship staff with the Kansas City Royals, has been named the 42nd different manager in White Sox history. 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.

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. The word in the example sentence does not match the entry word. Having determined the required pennant we are left with the problem of merging the remaining list of pennants with a single full binary tree. Improve your vocabulary with English Vocabulary in Use from Cambridge. A flag serving as an emblem of victory or championship, esp. in baseball. After winning franchise’s eighth pennant, seeking third championship .

Pennants, banners and portable political signs are permitted only during the campaign. The Pennant shall be presented to the winning club at some convenient date and location after the last veteran event of the season, the date and location to be decided by the SRA Committee. Here are all the possible meanings and translations of the word pennant. Any long, https://1investing.in/ narrow, usually triangular flag, as used in naval signal hoists, for a school banner, etc. He had seen our flags off Benita, but had not troubled to read the message, as he saw the answering pennant flying from the Lighthouse. Many early pennants even downplayed the team name for a large pictograph of, say, the team in action (here’s a great collection).

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