A sharp rally followed by a small symmetrical consolidation with converging highs and lows. It is a brief pause before the next leg up.
How to identify it
- Strong impulsive rally as the pole
- Lower highs and higher lows converge
- Pennant is short relative to the pole
Entry
Buy the break above the pennant upper line.
Stop loss
Below the last pennant low.
Target
Pole length projected from the breakout.
Invalidation
Price breaks the lower line and closes beneath it.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your bull pennant trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.