Continuation◐ Heuristic
◆ The PatternSmall symmetrical triangle on a pole — brief pause before continuation
A Pennant is a small symmetrical triangle that forms after a strong move (the pole). Converging trendlines create a brief pause. Breakout continues in the direction of the pole. Typically resolves within 1-3 weeks.
Target = Breakout + Pole length
Key difference from flags: pennants have converging trendlines (triangle), flags have parallel trendlines (channel).
// Pennant anatomy — pole + triangle
Key insight: Volume should contract during the pennant and expand on breakout. A breakout without volume is unreliable.
Pattern bridge: Converging trendlines compressing volatility before a breakout. In statistics, decreasing variance signals the same convergence.