Patterns › Continuation
Bullish Pennant pattern
A bullish pennant is a continuation pattern that forms when a strong rally pauses in a small symmetrical triangle of converging trendlines, typically resolving with a breakout that continues the prior advance.
Stocks forming it recently ↓
What does a bullish pennant look like?
Our scanner checks it as a setup where all of these hold:
- A flagpole: a rise of at least 6% over 4 trading days, starting within the last 30 trading days and ending at least 2 days ago.
- A pennant from the top of the pole up to today, at most 25 trading days long, with at least two swing highs and two swing lows.
- The pennant's range narrows by at least 30% from start to finish.
- The pennant's lines only have to converge. They don't have to slope toward each other the textbook way: both can slope down, or both up.
- How far the pennant pulls back isn't checked, and neither is volume.
How reliable is the bullish pennant pattern?
In our most recent backtest (March – September 2026, out-of-sample), 61.9% of the 9,201 highest-scoring bullish pennant setups, out of 104,282 studied, were trading higher two weeks later.
How are entry, stop and target set?
Every pick comes with an entry zone, price targets and a stop. The targets come from how far past bullish pennant setups actually moved, not from a textbook projection of the pattern's height. The stop scales with the stock's own average daily range, so a volatile stock gets a wider stop than a quiet one.
How is it different from a bull flag?
Both are brief continuation pauses after a strong advance, but a bullish pennant forms a small converging triangle, while a bull flag forms a parallel, slightly downward-sloping channel.
Stocks forming a bullish pennant recently
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