Pennant Pattern Indicator for MT5 Download – Free – [TradingFinder]

The Pennant Pattern Indicator provides a visual display on the chart using colored lines to highlight two continuationstructures the Pennant and the Flag. This pattern typically emerges after a strong price movement, commonly called the flagpole.

In technical analysis, the pennant is considered a reliable continuation pattern that often confirms the prevailing market trend.

Pennant Pattern Indicator Specifications Table

The following table describes the features of the Pennant Pattern indicator.

Bullish Trend Scenario

On the 1-hour chart of Gold vs. US Dollar (XAU/USD), the price enters a consolidation phase after a strong bullish movement as the first leg. In this area, the indicator identifies and highlights the Pennant Pattern. Upon a bullish breakout, the trend continues, and the second leg forms with increased acceleration.

Bearish Trend Scenario

On the 15-minute chart of NZD/USD, following an initial price drop and formation of the first bearishleg, the market consolidates within a tight range where the Pennant pattern forms. A breakout to the downside continues the bearish move and provides a suitable entry for short positions.

Pennant Pattern Indicator Settings

The following image displays the settings section of the Pennant Pattern Indicator, allowing users to customize the tool's behavior:

• Price Channel Length: Number of candles used for drawing the channel
• Trend Slope Span: Parameter for calculating the pattern's slope
• Shape Detection Factor A: Calculations for forming the Pennant pattern
• Shape Detection Factor B: Calculations for forming the Flag pattern

Conclusion

The Pennant Pattern Indicator, developed based on Price Action concepts, can display both Pennant and Flag patterns. These structures typically appear after sharp price movements and signal the continuation of the previous trend.

This tool is suitable for all markets, including Forex, Cryptocurrencies, Stocks, and Commodities, and offers great flexibility across various trading strategies.