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Pennants
Pennants are drawn with two trendlines that eventually converge. A key characteristic of pennants is that the trendlines move in two directionsβthat is, one will be a down trendline and the other an up trendline. The figure below shows an example of a pennant. Often, volume will decrease during the formation of the pennant, followed by an increase when price eventually breaks out.
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Pennants are drawn with two trendlines that eventually converge. A key characteristic of pennants is that the trendlines move in two directionsβthat is, one will be a down trendline and the other an up trendline. The figure below shows an example of a pennant. Often, volume will decrease during the formation of the pennant, followed by an increase when price eventually breaks out.
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