The Bull Pennant Pattern is a multi-candle pattern that is usually found within the uptrend of a currency pair. It is a continuation pattern identified by narrowing price action following a strong advance and is so named becasue of its resemblance of a pennant on a pole.
The advance of the pattern known as the flagpole, is indicative of strong price action and the narrowing price action is a somewhat symmetrical triangle resembling a pennant.
The action expected is that there will be a breakout to the upside and the length of the flagpole can be added to the breakout area to determine a potential profit target. Stops should be placed just below the bottom of the pennant once the breakout has been confirmed.
