The logic of patterns: a trend takes a breath

A 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 area and rests; this compression is called consolidation. The logic is simple: after a fast move, some participants take their gains, new ones look for a way in, and the market strikes a brief balance.

The name "continuation" comes from the traditional reading: these compressions usually resolve in the direction of the prior trend — the pause ends, the journey resumes. To recognise one, look for two things: first a clear trending move, then a compression that is SMALL relative to that move and narrowing. If the compression is as large as the move itself, you are looking at a new battleground, not a pause.

And let it be said upfront: "continuation pattern" is a name, not a promise. These shapes carry a TENDENCY to resolve with the trend; they do not always do so, and sometimes they break the opposite way. The pattern's name tells you where the probability concentrates; only the breakout itself shows the outcome.