Scanner interpretation
A pennant is a short compression after a sharp directional move. Market Radar treats it as a compact continuation structure only when the prior impulse is clear and the compression does not become extended or disorderly.
Pennants are usually tighter and shorter than broader triangles. That compactness is part of their value, but it also means false breaks can happen quickly.
- Sharp move before compression
- Short converging structure
- Declining range size
- Nearby invalidation
Quality model
Higher quality pennants hold trend context while volume cools and volatility contracts. The trigger side should be clear enough for a scanner result to explain what would confirm or invalidate the condition.
A pennant weakens when compression expands against the trend or takes so long that it becomes a broader base rather than a short pause.