$ROSG nice intraday spike
A pennant can be bullish or bearish and is also a continuation pattern. These patters are seen often. You would want to trade these patterns only if they develop in 4 weeks or less. Some traders will say 5 weeks is okay to trade, but we have found 4 weeks or less seem to be more reliable. Bull and Bear pennants tend to be susceptible to "throwback." Throwback is a term used to describe a break in a pattern in the wrong direction before continuation of the trend.
The advance has solid volume and the upward price action is strong, which forms the vertical look of a flagpole (Not always super easy to notice). The consolidation period and narrowing trading range is characterized by volume contraction as upside price action is temporarily interrupted. This forms a pennant which also resembles a symmetrical triangle, but remember a triangle can take 5 weeks to several months to form. The pennant portion of the pattern has highs and lows which can be connected by small trend lines which converge.
The decline has solid volume and the downward price action is consistent, which forms the look of an inverted flagpole. I prefer 1 big spike down on increasing volume. The resting period and narrowing price action is characterized by volume contraction as downside intensity is temporarily interrupted. This forms a pennant which also resembles a small symmetrical triangle. The pennant portion of the pattern has highs and lows which can be connected by small trend lines which converge.