Pennant
A short converging consolidation following a sharp move, forming a small symmetrical triangle.
How it is identified
Test: a steep prior move, followed by a brief consolidation whose upper and lower boundaries converge
Unit
qualitative
In depth
A pennant is a flag with converging rather than parallel boundaries, and the two are frequently used interchangeably because the distinction is often marginal on real charts. Both are short by definition — typically one to three weeks — and a consolidation lasting two months is a range, not a pennant. The convergence produces a progressively tighter stop, which is the practical difference from a flag. The entry describes the shape and does not forecast the resolution.
Worked example
After a rise from ₹462 to ₹534, price oscillates between ₹528 and ₹518, then ₹526 and ₹521. The range has narrowed from ₹10 to ₹5 across eight sessions, retracing under 20% of the advance.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Pennant” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.