CONTINUATION PATTERN
Flag and pennant
A compact pause after a directional impulse.
Rules visible before the outcome
- Impulse exceeds a predefined ATR or percentile threshold
- Consolidation is smaller and shorter than the impulse
- Slope and overlap rules are explicit
02 / CONFIRMATION
When the idea becomes eligible
A close beyond the consolidation in the impulse direction.
03 / INVALIDATION
What proves it wrong
A break of the opposite consolidation boundary.
The attractive mistake
Calling any channel a flag ignores the required prior impulse.
Make it falsifiable
Stratify by impulse size, retracement depth and consolidation duration.
1Freeze the geometry
2Timestamp eligibility
3Count every outcome
4Test unseen data