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Chart Patterns

Flags & Pennants: Trading the Pause

The pole and the flag

A flag is a short counter-trend consolidation that follows a sharp, near-vertical move — the flagpole. The pause lets the move digest before continuing in the original direction.

Pennants are the same idea with a small symmetrical-triangle shape instead of a parallel channel. Both resolve quickly, usually within one to three weeks.

The measured move for a flag projects the full length of the flagpole from the breakout point — these can be explosive.
  • Entry: breakout from the flag channel
  • Stop: opposite side of the flag
  • Target: flagpole length projected from breakout

Put this pattern to work in your own journal.

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