> For the complete documentation index, see [llms.txt](https://smartmoney.gitbook.io/smart-money-concepts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartmoney.gitbook.io/smart-money-concepts/definitions/candlestick-patterns/pennant.md).

# Pennant

Continuation pattern

Pennants are continuation patterns drawn with two trendlines that eventually converge. A key characteristic of pennants is that the trendlines move in two directions—one will be a down trendline and the other an up trendline. 

Often, the volume will decrease during the formation of the pennant, followed by an increase when the price eventually breaks out.

<figure><img src="https://929344964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5nf3g52cn0PXZ0Xzzs9m%2Fuploads%2FNapvCtWCbydNUH5wEZnm%2Fimage.png?alt=media&amp;token=95b6fd2b-461a-4817-be15-d1202f3ccc98" alt=""><figcaption><p>Pennant</p></figcaption></figure>

Reference: <https://www.investopedia.com/articles/technical/112601.asp>