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.
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.
No active Pennant Reversal detections in the last 48 hours. Check back after the next nightly scan (Mon–Fri, 9:30 PM ET).
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.
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
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.
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Pattern detections updated nightly · For informational purposes only · Not investment advice