Pennant Pattern Indicator for MT4 Download – Free – [TradingFinder]

The Pennant Pattern Indicator utilizes colored lines to draw two continuation patterns the Flag and the Pennant Pattern. The Pennant Pattern often signals the continuation of the current market trend and typically forms after a sharp price movement (commonly called the flagpole).

The Pennant Pattern is one of the most effective continuation patterns in technical analysis and offers favorable trading opportunities.

Pennant Pattern Indicator Specifications Table

Below are the specifications of the Pennant Pattern Indicator.

Bullish Trend

In the 1-hour Cardano (ADA) chart, following a strong bullish move (the first leg), the price enters a compression zone, and the indicator identifies and draws the Pennant Pattern.

Once the pattern breaks upwards, the continuation of the trend is confirmed, and the second bullish leg forms.

Bearish Trend

The 30-minute chart of EUR/USD demonstrates the performance of the Pennant Pattern Indicator.

After the initial drop (first bearish leg), the price enters a consolidation phase, and the indicator draws the pennant pattern.

Breaking downward from this zone will continue the move and form the second bearish leg, creating a sell opportunity.

Pennant Pattern Indicator Settings

The image below shows the settings panel for the Pennant Pattern Indicator:

• Price Channel Length: Number of candles used to calculate and draw the channel
• Trend Slope Span: Parameter related to the pattern's trendline slope
• Shape Detection Factor A: Calculations for forming the Pennant pattern
• Shape Detection Factor B: Calculations related to the Flag pattern formation

Conclusion

Based on price action principles, the Pennant Pattern Indicator identifies and draws both Pennant and Flag patterns.

Both patterns form after rapid price movements and signal the potential continuation of the existing trend.

This tool can be applied across all markets, including forex, crypto, stocks, and commodities.