# Pennants

## Bullish Pennant

A bullish pennant is a chart pattern used in technical analysis that is typically formed after a significant upward movement in price. This movement forms the pole of the pennant. After the rapid rise, the price consolidates or moves sideways, forming a triangular shape. This consolidation represents a period of indecision in the market as it decides the next direction of the price. The formation is completed when the price breaks out of the triangle in the same direction as the initial upward movement (continuation pattern), indicating that the price is likely to continue to rise.

<figure><img src="https://2957539367-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FgjozHDr5yxjsm9wDwBo4%2Fuploads%2FkWWqOunR1nb3FIDSb9K0%2Fbullish-pennant-1.webp?alt=media&#x26;token=d6797598-b8fb-4293-b00e-311cdb2f58a8" alt=""><figcaption></figcaption></figure>

<figure><img src="https://2957539367-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FgjozHDr5yxjsm9wDwBo4%2Fuploads%2FlVCRyAkfsWFPA6lG2gFU%2Fbullish-pennant-2.webp?alt=media&#x26;token=d2f8cced-76a7-4fd3-8a69-34695dcca044" alt=""><figcaption></figcaption></figure>

## Bearish Pennant

A bearish pennant is the opposite of a bullish pennant. It is formed after a significant downward movement in price, which forms the pole of the pennant. The price then consolidates or moves sideways, forming a triangular shape. This represents a period of indecision before the market continues in the same direction as the initial downward movement. The formation is completed when the price breaks down out of the triangle, indicating that the price is likely to continue to fall.

<figure><img src="https://2957539367-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FgjozHDr5yxjsm9wDwBo4%2Fuploads%2FrFLFB06Zp2bs8frH2HOO%2Fbearish-pennant-1.webp?alt=media&#x26;token=f2d94473-5a75-4419-9706-2cc8d5852caf" alt=""><figcaption></figcaption></figure>

<figure><img src="https://2957539367-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FgjozHDr5yxjsm9wDwBo4%2Fuploads%2Fvp5vkCdONeLypPanNfEF%2Fbearish-pennant-2.webp?alt=media&#x26;token=57410765-7832-4418-9c05-21bcfd479cfc" alt=""><figcaption></figcaption></figure>

In both cases, the pennant is typically a short-term pattern lasting from one to three weeks. And the volume usually decreases during the formation of the triangle (the consolidation period) and expands on the breakout.


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