A pennant is a type of continuation pattern that forms when there is a large move in a security, known as the flagpole, followed by a period of consolidation with a support trendline - the pennant - followed by a breakout in the same direction as the initial large move, representing the second half of the flagpole. The pattern is used in technical analysis as a continuation pattern, and it's important to look at volume in the pennant, with lower volume during consolidation and higher volume during the breakout. Traders often use pennants in conjunction with other technical analysis forms as confirmation.