Guide
Bull Flag vs Pennant: How to Tell Them Apart
Both start with a sharp move, called the pole, followed by a short pause. The shape of the pause is what separates them.
The quick difference
- Bull flag: the pause is a small channel with parallel lines, drifting down against the rise.
- Pennant: the pause has converging lines, forming a tiny triangle.
Bull flag
After a sharp rise, price drifts slightly lower in a neat channel. The usual read is continuation if price closes above the channel's upper line.
Pennant
After a sharp move, the swings get smaller and converge. It usually follows the direction of the pole, and a pennant after a sharp drop can lean bearish.
What both need
- A sharp move first. Without a pole, it is just a small channel or triangle.
- A short pause compared with the pole. A long drift looks less like either pattern.
- A shallow pullback. Giving back most of the pole weakens the read.
Related patterns
Educational only. Not financial advice or trading signals.