📍 Entry / Buy Zone
Above the Pennant
Buy on a candle close above the small converging triangle as the trend resumes.
🛑 Stop Loss
Below Pennant Low
Place the stop just below the lowest point of the pennant.
🎯 Price Target
Breakout + Pole Height
Measure the pole (the sharp rally) and project that distance up from the breakout.
⚖️ Risk / Reward
Aim for ≥ 2:1
Pennants resolve fast — but only trade when the target is at least 2× your risk.
Trading Rules — Bull Pennant
01Pole then coil. A sharp rally (the pole) followed by a small symmetrical triangle of consolidation.
02Brief and tight. Pennants are short-lived — a few candles of coiling, not a long base.
03Flag vs pennant. A flag is a parallel channel; a pennant converges to a point.
04Wait for the breakout. Enter on a close above the upper boundary, with volume.
05Invalidation. A close below the pennant low ends the setup.
For educational purposes only. Not financial advice. Always manage risk with position sizing and never risk more than you can afford to lose.