Flag resembles a small channel against the preceding move, Pennant a small narrowing triangle. The preceding sharp move forms the flagpole. Distinguish this pole, the consolidation itself and the later breakout; their heights are not interchangeable.
StockCharts requires a sharp move with substantial volume before Flag or Pennant. Flagpole is measured from the initial support or resistance break to the extreme before consolidation. A small channel without this context is not the same formation. [1]
Flag is a short rectangular channel sloping against the preceding trend: downward after a rise, upward after a decline. Price stays between parallel boundaries. Bull Flag or Bear Flag describes the context, not a certain outcome. [1]
Pennant resembles a small Symmetrical Triangle whose range narrows. It differs from a general triangle mainly through the sharp preceding move and short consolidation. A pointed outline alone is insufficient. [1]
StockCharts gives one to four weeks as ideal but describes the broader duration limits as debated. This is not a universal candle count for every Timeframe. Define maximum duration and data resolution before testing. [1]
The bullish variant needs a break above upper resistance, the bearish one a break below lower support. Volume during the initial move and breakout is separate information. A boundary touch or a picture without volume does not by itself confirm these conditions. [1]
For an approximate target, transfer the flagpole length to the boundary at the breakout: add it upward or subtract it downward. Do not use the consolidation width. This projection is neither a success probability nor a guaranteed future price. [1]
TradingView warns that a pivot plotted in the past may only be confirmed by later candles. Backtesting must use the time information becomes available, not merely the marker's position on the chart. This also applies to choosing pole and boundary points. [2]
Define the breakout rule, any Close requirement and filters beforehand. Separate tuning from evaluation and include failures, fees and Slippage. Outcomes also depend on entry, exit and risk; correctly recognizing a shape alone does not prove profit. [3]
A pole, a declining flag and a separate target
For the clearest picture, read this entry together with Triangle Pattern, Trendline, Breakout, False Breakout, Backtesting.
01Is every small triangle a Pennant?+
No. The sharp preceding move and short consolidation also matter. Without that context, the same outline cannot automatically be called a Pennant.
02Is the target measured using the flag's own height?+
No. This projection method uses the flagpole length and transfers it to the boundary at the breakout. Even a correct calculation does not guarantee that price reaches the target.