Chart pattern · Continuation · Neutral
What is it, in one line
A sharp move, the pole, followed by a small symmetrical triangle before the move resumes.
Neutral · Continuation · verdict: Traditional claim, not yet measured here
A sharp move, the pole, followed by a small symmetrical triangle before the move resumes.
Method
Conventional target: A break in the prior direction projects a move equal to the pole’s length.
Invalidated by: A break against the prior trend invalidates the pattern.
The detector has no rule for this formation on its own. The pole is what the rule keys on, and a pole has a direction, so it is tested as 2 separate formations. Both are below, and each has a page of its own.
A pole, then a symmetrical narrowing — falling highs and rising lows — small against the pole. A pennant differs from a flag only in that the consolidation CONVERGES rather than drifting.
The traditional claim
Read as a bullish continuation.
How this detection is wrong
Without the pole this is a symmetrical triangle, which carries no direction. The pole is the entire difference.
A falling pole, then a symmetrical narrowing small against it.
The traditional claim
Read as a bearish continuation.
How this detection is wrong
As the bullish pennant, inverted.
A pole, then a symmetrical narrowing — falling highs and rising lows — small against the pole. A pennant differs from a flag only in that the consolidation CONVERGES rather than drifting. The same shape after a rise and after a fall are different formations to a detector, because the pole it measures has a direction — so this is tested as Bullish Pennant and Bearish Pennant.
Neither on its own. It continues whatever move preceded it, which is why the engine defines 2 separate rules: Bullish Pennant (bullish) and Bearish Pennant (bearish).
Without the pole this is a symmetrical triangle, which carries no direction. The pole is the entire difference.
Measurement pending re-run
No hit rate is published here yet. The run that would supply one was computed on engine ca6d9e36c81c; the engine is now cfb08765de7c. Its candlestick rows included the still-forming bar, and it predates the chart formations entirely, so those figures have been withdrawn rather than published with a caveat. The definition above is unaffected: it is what the detector tests, and no re-run changes it.