These two short-term chart patterns are

continuation patterns that are formed when there

is a sharp price movement followed by
a generally sideways price movement.
This pattern is then completed upon another
sharp price movement in the same direction as
the move that started the trend.
The patterns are generally thought to last from
one to three weeks.
 Figure 5

As you can see in Figure 5, there is little

difference between a pennant and a flag.
The main difference between these price
movements can be seen in the middle section of
the chart pattern.
In a pennant, the middle section is characterized
by converging trendlines, much like what is seen
in a symmetrical triangle.
The middle section on the flag pattern, on the
other hand, shows a channel pattern, with no
convergence between the trendlines.
In both cases, the trend is expected to continue
when the price moves above the upper trendline.