The Pennant Pattern is a technical analysis chart formation that typically appears after a strong price movement, indicating a brief consolidation period before the trend continues. It resembles a small symmetrical triangle, where the price oscillates between converging trendlines. Traders often view this pattern as a continuation signal, suggesting that the previous trend is likely to resume. To identify a pennant, traders look for a sharp price increase or decrease, followed by a period of consolidation characterized by lower highs and higher lows. This pattern is commonly used in conjunction with other indicators to confirm potential breakout points, making it a popular tool among technical analysts and day traders.