A pennant is a close relative of the flag: the same sharp pole, but the consolidation forms a small symmetrical triangle (converging trend lines) rather than a parallel channel. It is a brief coil of indecision inside a strong trend before continuation.
Flag vs. pennant
The only real difference is the shape of the pause: a flag drifts in a tilted rectangle, a pennant converges to a point. Both follow a sharp move, both form on declining volume, and both typically resolve in the direction of the pole. In practice traders treat them almost identically.
Reading it
The pennant should be small and brief — a few candles of tightening range. Volume contracts through the coil and expands on the breakout. As with flags, a pennant that grows large or lasts a long time is no longer a quick continuation pause and should be treated as a fuller triangle (next lessons), whose bias is more neutral.