⁣Both the Flag Pattern and Pennant Pattern are continuation patterns, which means they indicate that the current trend is likely to continue after a brief consolidation. They are short-term patterns that typically form after a strong price movement. 🔹Flag Pattern: This pattern is characterized by a strong price movement (flagpole) followed by a consolidation phase (flag). The consolidation moves in the opposite direction to the initial trend, often in a parallel channel. 🔹Pennant Pattern: Similar to the Flag, but the consolidation forms a small symmetrical triangle (with converging trendlines). The breakout from the pennant is often very sharp. Key Point: Both patterns suggest that after the consolidation, the price will continue in the direction of the previous trend once the price breaks out. Example: After a strong upward movement (flagpole), a Flag Pattern appears with a downward slanting consolidation. A breakout to the upside from the flag pattern would signal that the price is likely to continue its bullish trend.