DollarYen PennantPennants are often considered continuation patterns, a break-out of which often yields a major advance. Coiling is a common feature in market patterns as changes in buying and selling intensity yield to the outcomes of excess demands or supply. Given patterns such as pennants are considered to have some predictive function, there is a reflexive propensity for them to work, at least insofar as they are widely observed...
In shorter macro time horizons, with fewer people to observe patterns and a greater instance of false-breaks due to a preponderance of algorithms and so forth, I take these entries with a grain of salt. Nevertheless, it is a logical basis upon which to add, at least on the basis of my priors.
