Pennant Reversal

Bilateral55% Win Rate~12 bars to target

A pennant reversal forms when a symmetrical triangle appears after a prolonged trend but resolves in the opposite direction — a false continuation that traps trend-followers. Volume is the key tell: volume contracts during the pennant but explodes on the reversal breakout.

How to Identify the Pennant Reversal

  1. 1Prolonged prior trend (the "pole") — at least 15–20% move
  2. 2Symmetrical triangle consolidation (converging trendlines)
  3. 3Volume dries up during the triangle — indecision
  4. 4Breakout in the OPPOSITE direction of the pole on strong volume — the reversal signal

When to Trade It

Enter only on a confirmed reversal breakout in the opposite direction with high volume. Stop inside the triangle. Target: retrace 50% of the prior trend.

EdgeOS integration: look for momentum confirmation in the direction of the breakout via SCTR and EdgeOS counts to align the pattern signal with the EdgeOS system for highest-conviction entries.

Live Stocks Showing the Pennant Reversal

Last 48h · 0 found

No active Pennant Reversal detections in the last 48 hours. Check back after the next nightly scan (Mon–Fri, 9:30 PM ET).

Frequently Asked Questions

What is the Pennant Reversal pattern?

A pennant reversal forms when a symmetrical triangle appears after a prolonged trend but resolves in the opposite direction — a false continuation that traps trend-followers. Volume is the key tell: volume contracts during the pennant but explodes on the reversal breakout.

How do I identify a Pennant Reversal?

Prolonged prior trend (the "pole") — at least 15–20% move Symmetrical triangle consolidation (converging trendlines) Volume dries up during the triangle — indecision Breakout in the OPPOSITE direction of the pole on strong volume — the reversal signal

What is the win rate for the Pennant Reversal pattern?

The Pennant Reversal has a historical win rate of 55% when traded correctly with volume confirmation and proper stop placement. Average bars to target: 12. Always combine with trend context and market regime for best results.

Which stocks are showing a Pennant Reversal right now?

No stocks are currently showing a high-confidence Pennant Reversal. TraderValue scans 1,500+ stocks nightly and updates detections after market close.

Scan all Pennant Reversals in the workspace

See every active detection with confidence scores, SCTR, and chart links — updated nightly.

Open Pattern Scanner →

Pattern detections updated nightly · For informational purposes only · Not investment advice