A Bull Pennant pattern is characterized by a swift upside move (flag pole), a pause in the middle in a symmetrical triangle formation (pennant), then a continuation to the upside. The pennant is thought to be the halfway point in the increase, often referred to as the point at which the bull pennant is flying at "half-mast."
This technical price pattern is classified as a continuation pattern. It is commonly used in day trading, stock trading, options trading, and futures trading.
Here's a Bull Pennant example for you. As you will notice, the initial move is extremely swift to the upside. The next move is a triangle pattern that creates a "pennant-like" look. Lastly is a nice continuation to the upside, equal to the height of the initial flag pole.
Related Terms: Bear Pennant Pattern, Bear Flag Pattern, Bull Flag Pattern
See also: Consolation, Head and Shoulders Pattern, Inverse Head and Shoulders Pattern, Cup With Handle Pattern