Structure

Two parts:

1. Flagpole

1. Sharp, explosive move upward with high volume
2. Strong momentum — usually a single or few large candles
3. The bigger the pole, the stronger the eventual breakout

2. Pennant

1. Price consolidates in a symmetrical triangle
2. Upper trendline: descending — lower highs
3. Lower trendline: ascending — higher lows
4. Both lines converge toward an apex
5. Volume contracts significantly during this phase