Triangles, Flags, and Pennants — Guide to Continuation Patterns
Chart patterns can be mysterious — until they’re not. Let’s break down the technical trio that tells you when a trend’s just taking a breather before it flexes again.
So your chart’s been pumping higher for weeks, and then… nothing. Price starts scribbling sideways. Cue panic? Maybe. But more likely, you’re staring at a continuation pattern.
Triangles, flags, and pennants are the subtle “hold my beer before I try to pull a move” signals of technical analysis. They show up when markets pause — not reverse. That pause could mean your trend is catching its breath, not dying in a ditch.
In other words: don’t close your longs just because things go quiet. Sometimes the market is just stretching before it sprints again.
⚠️ Symmetrical, Ascending, Descending
Let’s talk triangles, the Swiss Army knife of consolidation. These shapes come in three stylish varieties:
● Symmetrical triangle: Higher lows, lower highs. Traders call this the indecision pattern, but don’t get it twisted — it may just be winding up for a breakout. Wanna see how these look in practice? Dive into our community’s symmetrical triangle ideas.
● Ascending triangle: Flat top, rising bottom. Buyers are aggressive, their patience is running out. Resistance looks like it’s begging to be broken. Check the ascending triangle ideas for your viewing consideration.
● Descending triangle: Flat bottom, falling top. This one’s more bearish than your boomer uncle who knows zero about Bitcoin
BTCUSD, and yes — it’s often a precursor to a breakdown. Follow the descending triangle ideas and make sure you DYOR.
Key tip: Wait for the breakout. Don’t front-run triangles unless you like volatility surprises and emotional damage.
🚩 Flags: Fast Moves, Tight Consolidations
Flags form after a sharp price move — the “flagpole” — followed by a tight, slightly sloping channel that moves against the prevailing trend. They’re short-term patterns that act like pit stops during a race.
● In a bull flag, price rallies sharply, then consolidates lower in a downward-sloping rectangle. If price breaks above the upper boundary, the uptrend is likely to resume. Jump straight into the bullish flag ideas.
● In a bear flag, price crashes, then drifts higher or sideways, forming an upward-sloping consolidation. A breakdown below the lower support hints at a continuation lower. What goes up must go down — bearish flag ideas for thought.
Flags are prized for their reliability and tight risk-to-reward setups. The breakout is typically swift, and traders often use the length of the flagpole as a projected target.
🎏 Meet the Pennant: The Flag’s Cousin
Pennants are like mini-triangles that form after a strong price move, usually in high-volume conditions. Unlike regular triangles, they’re smaller and more compressed — a tight consolidation in the shape of a tiny symmetrical triangle.
What makes a pennant different from a flag? The structure. While flags are rectangular, pennants are more pointed — a converging pattern rather than parallel lines.
Pennants are often seen in high-momentum environments, and when price breaks out of the consolidation zone, it often does so with force. Get some pennant ideas straight from our community.
🧐 How to Actually Trade These Patterns
Spotting a continuation pattern is one thing. Trading it with discipline is another.
Here’s a basic checklist:
● Identify the trend. Continuation patterns only work when there’s a clear preceding move. If the chart is a sideways mess, maybe skip it.
● Draw your levels. Use trendlines or horizontal support/resistance to outline the pattern. Keep it clean — if you’re forcing a pattern, it probably isn’t there.
● Wait for the breakout. Don’t jump in too early. Let the price confirm your bias. Breakouts are more credible with a volume spike.
● Set your stop wisely. Most traders place stops just outside the opposite side of the pattern — below the lower trendline in an uptrend, or above the upper trendline in a downtrend.
● Target projection. Many use the height of the pattern or the flagpole to estimate a target price, though market conditions should influence your approach.
🤔 So, What Could Go Wrong?
Glad you asked. Plenty.
● Fakeouts: Just because it looks like a breakout doesn’t mean it’s real. Wait for confirmation — volume, a close outside the pattern, or your favorite indicator giving the green light.
● Shaky patterns: Not every triangle-looking pattern is a triangle. Sometimes it’s just noise. Don’t make up patterns. The market doesn’t care about your geometry.
● Overleveraging: Continuation patterns look reliable, but no pattern is bulletproof. Position sizing still matters. Don’t bet the farm because a pennant gave you butterflies.
💡 Pro Tips from the Chart Trenches
● Set alerts on trendline breaks so you’re not glued to the screen like a caffeinated hawk.
● Use pattern recognition tools if you’re a newer trader — but verify manually. No software is a crystal ball.
● Trade continuation patterns in the direction of the trend. Countertrend flags are usually bear traps in disguise.
📌 One Last Thing: Pattern ≠ Prediction
Chart patterns don’t tell the future. They tell a story about buyer and seller behavior. Continuation patterns? They’re just the market saying, “Yeah, we’re still into this trend. Just grabbing some break first.”
Use them as one part of a system. Combine them with momentum indicators, volume, or good ol’ fashioned risk management.
Because in the end, it’s not about how many triangles you find — it’s about how many fakeouts you avoid.
Off to you: Spotted any textbook triangles or sneaky flags this week? Or caught a pennant fakeout that wrecked your stop loss?
Drop your best (or worst) continuation pattern story below. You never know who might learn something from your chart scars.
So your chart’s been pumping higher for weeks, and then… nothing. Price starts scribbling sideways. Cue panic? Maybe. But more likely, you’re staring at a continuation pattern.
Triangles, flags, and pennants are the subtle “hold my beer before I try to pull a move” signals of technical analysis. They show up when markets pause — not reverse. That pause could mean your trend is catching its breath, not dying in a ditch.
In other words: don’t close your longs just because things go quiet. Sometimes the market is just stretching before it sprints again.
⚠️ Symmetrical, Ascending, Descending
Let’s talk triangles, the Swiss Army knife of consolidation. These shapes come in three stylish varieties:
● Symmetrical triangle: Higher lows, lower highs. Traders call this the indecision pattern, but don’t get it twisted — it may just be winding up for a breakout. Wanna see how these look in practice? Dive into our community’s symmetrical triangle ideas.
● Ascending triangle: Flat top, rising bottom. Buyers are aggressive, their patience is running out. Resistance looks like it’s begging to be broken. Check the ascending triangle ideas for your viewing consideration.
● Descending triangle: Flat bottom, falling top. This one’s more bearish than your boomer uncle who knows zero about Bitcoin
BTCUSD, and yes — it’s often a precursor to a breakdown. Follow the descending triangle ideas and make sure you DYOR.Key tip: Wait for the breakout. Don’t front-run triangles unless you like volatility surprises and emotional damage.
🚩 Flags: Fast Moves, Tight Consolidations
Flags form after a sharp price move — the “flagpole” — followed by a tight, slightly sloping channel that moves against the prevailing trend. They’re short-term patterns that act like pit stops during a race.
● In a bull flag, price rallies sharply, then consolidates lower in a downward-sloping rectangle. If price breaks above the upper boundary, the uptrend is likely to resume. Jump straight into the bullish flag ideas.
● In a bear flag, price crashes, then drifts higher or sideways, forming an upward-sloping consolidation. A breakdown below the lower support hints at a continuation lower. What goes up must go down — bearish flag ideas for thought.
Flags are prized for their reliability and tight risk-to-reward setups. The breakout is typically swift, and traders often use the length of the flagpole as a projected target.
🎏 Meet the Pennant: The Flag’s Cousin
Pennants are like mini-triangles that form after a strong price move, usually in high-volume conditions. Unlike regular triangles, they’re smaller and more compressed — a tight consolidation in the shape of a tiny symmetrical triangle.
What makes a pennant different from a flag? The structure. While flags are rectangular, pennants are more pointed — a converging pattern rather than parallel lines.
Pennants are often seen in high-momentum environments, and when price breaks out of the consolidation zone, it often does so with force. Get some pennant ideas straight from our community.
🧐 How to Actually Trade These Patterns
Spotting a continuation pattern is one thing. Trading it with discipline is another.
Here’s a basic checklist:
● Identify the trend. Continuation patterns only work when there’s a clear preceding move. If the chart is a sideways mess, maybe skip it.
● Draw your levels. Use trendlines or horizontal support/resistance to outline the pattern. Keep it clean — if you’re forcing a pattern, it probably isn’t there.
● Wait for the breakout. Don’t jump in too early. Let the price confirm your bias. Breakouts are more credible with a volume spike.
● Set your stop wisely. Most traders place stops just outside the opposite side of the pattern — below the lower trendline in an uptrend, or above the upper trendline in a downtrend.
● Target projection. Many use the height of the pattern or the flagpole to estimate a target price, though market conditions should influence your approach.
🤔 So, What Could Go Wrong?
Glad you asked. Plenty.
● Fakeouts: Just because it looks like a breakout doesn’t mean it’s real. Wait for confirmation — volume, a close outside the pattern, or your favorite indicator giving the green light.
● Shaky patterns: Not every triangle-looking pattern is a triangle. Sometimes it’s just noise. Don’t make up patterns. The market doesn’t care about your geometry.
● Overleveraging: Continuation patterns look reliable, but no pattern is bulletproof. Position sizing still matters. Don’t bet the farm because a pennant gave you butterflies.
💡 Pro Tips from the Chart Trenches
● Set alerts on trendline breaks so you’re not glued to the screen like a caffeinated hawk.
● Use pattern recognition tools if you’re a newer trader — but verify manually. No software is a crystal ball.
● Trade continuation patterns in the direction of the trend. Countertrend flags are usually bear traps in disguise.
📌 One Last Thing: Pattern ≠ Prediction
Chart patterns don’t tell the future. They tell a story about buyer and seller behavior. Continuation patterns? They’re just the market saying, “Yeah, we’re still into this trend. Just grabbing some break first.”
Use them as one part of a system. Combine them with momentum indicators, volume, or good ol’ fashioned risk management.
Because in the end, it’s not about how many triangles you find — it’s about how many fakeouts you avoid.
Off to you: Spotted any textbook triangles or sneaky flags this week? Or caught a pennant fakeout that wrecked your stop loss?
Drop your best (or worst) continuation pattern story below. You never know who might learn something from your chart scars.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Share TradingView with a friend:
tradingview.com/share-your-love/
Read more about the new tools and features we're building for you: tradingview.com/blog/en/
tradingview.com/share-your-love/
Read more about the new tools and features we're building for you: tradingview.com/blog/en/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.