What does Pennant Pattern mean?
This is a consolidation pattern that appears on a price chart when traders are testing the validity of a current trend. Price turn sideways or somewhat counter to the trend, and the price changes during the testing, which typically lasts from one to three weeks, can be bracketed by a pair of converging diagonal lines, which forms a shape that looks like a pennant.
A Pennant Pattern can occur during either a bull market or a bear market. In most cases the conclusion of the pennant is a return to the previous trend.