TRADING GLOSSARY
Pennant
A pennant is a brief consolidation with converging boundaries that follows a sharp price move. Unlike a flag, its range forms a small triangle; it is commonly viewed as a potential continuation pattern, although the eventual breakout may fail or move against the preceding trend.
EXAMPLE
In a hypothetical market, a steep decline pauses in a small triangular range before price breaks below the range and resumes falling.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure