Bullish Pennant Pattern — Flag Pole, Symmetrical Triangle & Measured-Move Target

Practical ICT Strategies – 7th Edition Released

Over 150 pages of knowledge coming from 8+ years of experience from Professional ICT Trader.

👉 Buy Now! ➝

Sponsored

Bullish Pennant is a bullish continuation pattern — a strong bullish “flag pole” followed by a tight consolidation between two converging trendlines that forms a symmetrical triangle (the “pennant”). When price breaks out of the pennant in the original trend direction, it signals the next leg higher. It is the converging-triangle cousin of the Bull Flag Pattern.

In this guide I walk you through the bullish pennant — the formation, the 5-step identification rule, the breakout-and-retest entry, the measured-move target, the step-by-step trade flow, common mistakes and the FAQ.

You can jump to the section you are most interested in from below or continue reading the full article for a complete view.

What is Bullish Pennant Pattern?

It is a type of bullish flag pattern, with only one difference — a pennant has converging trendlines forming a symmetrical triangle, whereas a flag has parallel trendlines forming a rectangle.

The bullish pennant is a bullish continuation pattern that indicates the extension of the uptrend after a period of consolidation.

Bullish Pennant Pattern Formation

It starts with a strong bullish move termed the flag pole.

After a strong move up, price tends to consolidate between two converging trendlines, making a pennant.

During the consolidation phase, volume is marked lower.

The formation of the pattern suggests that market participants are taking a temporary break and consolidating their positions.

This indicates a period of indecision and balance between buyers and sellers.

How to Identify Bullish Pennant Pattern

(I) Look for a bullish market structure and a strong move up. Without a strong bullish move, it is just a symmetrical triangle.

(II) After identifying the trend and strong bullish move, look for a less energetic retracement move.

(III) During the retracement move, identify “lower highs” and “higher lows”.

(IV) Now draw a trendline by joining the lower highs and another trendline by joining the higher lows. It will form a symmetrical triangle shape because the trendlines are converging.

(V) Now join the top of the symmetrical triangle with the previous bullish move (the flag pole) by a vertical line. It will form a complete bullish pennant pattern with flag pole and pennant.

How to Trade Bullish Pennant Pattern

To trade a bullish pennant, be patient and wait for the breakout of the pennant to the upside.

After the breakout of the pennant, wait for price to retrace back and retest the upper trendline of the pennant.

At the moment when price approaches the pennant and retests the upper trendline, look for some confirmations like a bullish candlestick pattern or a strong price rejection to the upside.

After the confirmation, you can execute a buy trade.

Stop Loss and Take Profit

While executing a buy trade using the bullish pennant pattern, your stop loss will be below the upper trendline of the pennant — or for safety, set your stop loss below the lower trendline of the pennant, depending on your risk appetite.

For take profit, measure the length of the flag pole and target that height from the pennant breakout point to the upside.

Bullish Pennant vs Bull Flag

Both are bullish continuation patterns and both use the same flag-pole + measured-move logic. The structural difference is in the consolidation:

Bull Flag — parallel trendlines, rectangle shape, sloping downward or horizontal.

Bullish Pennant — converging trendlines, symmetrical triangle shape, narrowing toward the apex.

In practice, the pennant suggests slightly tighter consolidation and often resolves faster than the flag. Both have the same trade rules — wait for breakout, retest, confirmation, then enter with measured-move target.

Bullish Pennant in the ICT Framework

Although the bullish pennant is a classic technical-analysis pattern, it maps cleanly into the ICT framework.

The flag pole is the displacement leg that produced the bullish BOS. The pennant is the consolidation that contains the inducement — typically at the lower trendline of the pennant. The breakout-and-retest entry is the post-inducement-sweep continuation play.

Layer a lower-timeframe MSS at the retest of the upper trendline for the tightest possible entry trigger.

Step-by-Step Bullish Pennant Trade Flow

This is the exact sequence I run when trading a bullish pennant.

1. Confirm bullish trend. Higher-timeframe structure must be bullish — higher highs and higher lows.
2. Identify the flag pole. An energetic bullish move with large-body candles.
3. Mark the pennant. Two converging trendlines connecting lower highs and higher lows of the consolidation.
4. Wait for the breakout. Price must close above the upper trendline of the pennant.
5. Wait for the retest. Price retraces back to the upper trendline after the breakout.
6. Wait for confirmation. Bullish candlestick pattern, strong rejection wick, or lower-timeframe MSS at the retested trendline.
7. Enter the buy. On the confirmation candle close.
8. Set the stop. Below the upper trendline (tighter) or below the lower trendline (safer).
9. Set the target. Measure the flag pole length and project it from the breakout point.
10. Manage the trade. Book partials at 1:1 risk-reward, trail to the full target.

Best Pairs for Bullish Pennant Trading

The bullish pennant works on every major instrument that produces trending moves — GBP/USD, EUR/USD, USD/CAD, plus metals such as XAU/USD and XAG/USD, and indices like NQ and ES.

For traders in the United States who follow the CFTC FIFO and no-hedge rules, the bullish pennant framework maps cleanly onto NQ and ES futures (CME Group) plus regulated forex pairs through US-based brokers. The 09:50 NY-AM macro window is a particularly strong place to watch for pennant breakouts.

Common Mistakes Around Bullish Pennant

These are the recurring mistakes I see when traders first start trading bullish pennants.

1. Trading a pennant without a flag pole. Without the strong bullish move before, it is just a symmetrical triangle — not a pennant. The flag pole is mandatory.
2. Trading a pennant against the trend. The pattern only works in a bullish trend. A bullish pennant in a bearish trend is just a bear retracement waiting to fail.
3. Entering at the breakout without retest. Many breakouts are fakeouts. Wait for the retest of the upper trendline plus a confirmation candle.
4. Marking the pennant too early. The pennant needs at least 4 to 6 candles of consolidation with clear converging trendlines. Forcing the shape too soon produces fakes.
5. Tight stops above the upper trendline. Stops at the boundary get hunted on the second test. Place the stop with a buffer below the upper trendline, or below the lower trendline for safer trades.
6. Ignoring the flag-pole-height target. The measured-move target is the disciplined way to take profit. Holding for longer than the flag-pole projection breaks the model.

FAQs about Bullish Pennant Pattern

Brief answers to the questions readers ask most often about the bullish pennant pattern.

What is a bullish pennant pattern?

A bullish continuation pattern formed by a strong bullish “flag pole” followed by a tight consolidation between converging trendlines that forms a symmetrical triangle (the “pennant”). Breakout above the upper trendline signals continuation higher.

How do I identify a bullish pennant?

Find a bullish trend, identify the strong bullish move (flag pole), then draw two converging trendlines joining the lower highs and higher lows of the retracement. The result should be a symmetrical triangle attached to the top of the flag pole.

What is the difference between a bullish pennant and a bull flag?

Bull flag has parallel trendlines (rectangle shape). Bullish pennant has converging trendlines (symmetrical triangle shape). Both are bullish continuation patterns with the same flag-pole + measured-move trade rules.

Where do I enter the trade?

After price breaks above the upper trendline and retests it, enter on the bullish confirmation candle (rejection wick, bullish engulfing, or lower-timeframe MSS).

Where do I place the stop loss?

Below the upper trendline (tighter) or below the lower trendline (safer) of the pennant, with a small buffer.

How do I set the take profit?

Measure the length of the flag pole and project it from the breakout point of the upper trendline. This is the measured-move target.

What timeframe works best for bullish pennant?

Bullish pennant appears on every timeframe. For day trading use 15-minute and 1-hour. For swing trading use 4-hour and daily. Higher timeframes produce more reliable pennants.

How does the bullish pennant fit in the ICT framework?

The flag pole is the bullish BOS displacement leg. The pennant is the valid pullback consolidation that contains the inducement. The breakout-and-retest entry is the post-inducement continuation play.

Does the bullish pennant work on indices and gold?

Yes — NQ, ES and XAU/USD all produce textbook bullish pennants, especially during the New York AM session and around US economic releases.

What if the breakout fails?

If price breaks below the lower trendline of the pennant instead of breaking up, the pattern is invalidated. The trend may be reversing — switch to looking for short setups.

What is the success rate of the bullish pennant?

In a confirmed bullish trend with a clean flag pole and tight pennant, the bullish pennant historically has a 60–70% breakout-success rate. The success rate drops significantly when traded against the higher-timeframe trend.

Can I trade the bullish pennant with no other indicators?

Yes — the bullish pennant is self-contained. But pairing it with the higher-timeframe ICT bias and a lower-timeframe MSS at the retest produces a much higher hit rate than the pattern alone.