A Pennant pattern is a continuation chart pattern, seen when a security experiences a large upward or downward movement, followed by a brief consolidation, before continuing to move in the same Pennant. The pennant is often the first thing you see when you open up a pdf of chart patterns. It’s created simply by significant stock movement and then consolidation. The converging lines bring the pennant shape to life. You should see a breakout movement taking place alongside the large stock shift. The entire movement of this pattern, that is the complete rise of the value is the flagpole for the flag/pennant. The Flag Pattern. As we now know, the flag pattern is a pattern that will resemble a rectangle. In essence, the stock will go up and down, but hitting the resistance and support lines each time.