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PENNANT

Pennants are short-term continuation patterns that mark a small consolidation before the previous move resume. Pennants are the same as flags but differ in that the trend lines converge towards an apex. The direction of the formation is normally in the opposite direction to the prior strong trend move, although in very strong trends they can slope horizontally or in the direction of the main trend. Flags, pennants and triangles are familiar chart patterns.


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