pennant

📘 What is a Pennant?
$MOVR jumped 44% in 5 hours yesterday, then started to squeeze into a small triangle. That is exactly how a pennant begins, and it is a great live lesson.
A pennant is a short pause after a very fast move. First comes the "pole": a big, quick candle run on heavy volume. Then price trades in a small triangle where the highs go down and the lows go up. The lines meet at a point, like a little flag on a pole.
• Bullish pennant: fast move up, then a small converging triangle
• Bearish pennant: fast move down, then the same small triangle
• Flag vs pennant: a flag is a tilted channel (parallel lines), a pennant has lines that meet
📊 Live chart in the cover and in the image post below.
🔍 How to spot a pennant
• Find the pole first: a sharp move, much bigger than normal candles
• Draw a line over the falling highs and a line under the rising lows
• The 2 lines should converge into a small, tight triangle
• Volume should fade during the pause
• The pause is short: usually 1–3 weeks on daily charts, hours to a day on 1H
• The pullback should stay shallow, ideally under 50% of the pole
📈 How traders use it
• Entry: on a candle CLOSE out of the triangle in the pole's direction
• Stop-loss: just beyond the other side of the pennant
• Target: measure the pole height and add it to the breakout point
🧪 Live example: MOVR 1H, October 5–6, 2026
The pole:
• Oct 5, 04:00 UTC: low at $1.655
• Oct 5, 09:00 UTC: high at $2.387
• About +44% in 5 hours, on the biggest hourly volume on the chart
The pause:
• Highs stepped down: $2.235, $2.182, $2.150, then near $2.06
• Range narrowed from about $0.31 to about $0.15
• Volume faded hour by hour
The problem: the lows did not rise. They slid from $1.963 to $1.915. Price now trades near $1.92, so the pause has given back about 63% of the pole. The 50% line is $2.021, and price is below it.
Right now RSI(14) on 1H is 47, with price just under the 20 EMA ($1.97) and near the 50 EMA ($1.94). That is a weak, sagging pennant, not a clean one.
What would need to happen: a 1H close above the upper line (around $2.06) on rising volume. A close under $1.915 would break the structure.
For comparison, $BTC shows no pennant now. Its last push (Oct 5, $84,972 to $86,130) was too slow to count as a pole.
⚠️ Common mistakes
• Calling any small triangle a pennant. No fast pole = just a triangle
• Ignoring depth. A pause that eats more than 50% of the pole is a warning
• Buying inside the pennant before the close out of it
• Waiting too long. If the pause drags on, the pattern loses its power
✅ Quick checklist
• Is there a clear, fast pole on high volume?
• Do the lines converge into a small triangle?
• Did volume fade and the pullback stay under 50%?
• Did a candle close out of the tip, with volume?
• Stop on the other side, target = pole height?
💬 Flag or pennant: which pattern has worked better for you? 👇
Not financial advice. DYOR.
#TradingTips #ChartPatterns #Pennant