Level 7
Continuation patterns
By the end of this level you can recognise the pauses where a trend consolidates — flags, pennants, triangles, rectangles — and read their breakouts together with volume.
In this level
- The logic of patterns: a trend takes a breathA pattern is a recognisable shape that price traces on the chart again and again. Continuation patterns are the periods after a strong move when price compresses into a narrow…
- Flags and pennantsA flag has two parts: first a sharp, almost vertical move — called the flagpole — then a narrow channel drifting gently against that move. In a rising market the flag hangs off…
- TrianglesA triangle is a compression between two converging lines, and it comes in three kinds. In an ascending triangle the highs keep hitting the same level (a flat resistance) while the…
- Rectangles and confirming the breakThe rectangle is consolidation at its plainest: price shuttles between a flat support and a flat resistance. You know this shape from level 2 — it is a small sideways band built…