Flags, pennants and wedges
A fast move, a small pause — and what the pause does and does not say.
Measure a flagpole in points and in ATR, read the flag or pennant after it as a shallow pullback, and name which line completes it before either is closed through. Recognise a rising or falling wedge as a trend whose pushes are shrinking — still intact by the sequence definition until the last swing low or high is closed through. Describe all of them without letting "continuation" quietly mean "another leg is coming".
5 chapters · 6 quiz questions · 9 terms · included with a plan
Otus, on this module
Flags are the patterns people most like to trade, because they come right after something exciting. That is also why they are the most misread: the move before them is doing all the persuading. Take the pole away and a flag is a small pullback. This module keeps the pole and the pullback in separate columns.
The chapters
Each module ends with you doing what it taught — a written answer Otus reads, and a quiz.
- 01 · Read
The pole and the flag
A fast move measured in ATR, a shallow pause, and two candidate lines.
- 02 · Read
Pennants, and the word "continuation"
A flag with converging edges — and why the family's usual label is a forecast.
- 03 · Watch
Watch: The Bull Flag
One minute, once it is public.
- 04 · Read
Wedges: an intact trend, gaining less each time
Both edges slope the same way — and the sequence definition still says intact.
- 05 · Write
In your own words
Measurements, then one sentence. Otus reads it.
- 06 · Quiz
Six questions
A wrong answer still pays. It costs the combo, not the XP.
9 terms this module defines
The same definitions Otus uses in the lessons. All of them are in the trading glossary.
- Flagpole
- A fast, nearly straight move — large bodies, little overlap — measured in points and against ATR; the pole, for short. The part of a flag or pennant that is already over.
- Bull flag
- A fast rise followed by a small, shallow pause drifting slightly lower. In structural terms, a pullback measured against the move before it.
- Bear flag
- A fast fall followed by a small, shallow pause drifting slightly higher. The mirror of the bull flag, with the same two candidate completion lines.
- Flag depth
- How much of the pole the pause gave back, as a fraction. A shallow pause is what separates a flag from an ordinary pullback; the cut-off is a convention chosen in advance.
- Pennant
- A flag whose edges converge: a small symmetrical triangle right after a fast move. Ends on a close outside it, in whichever direction that close happens.
- Flagpole measured move
- The convention of copying the pole's length from the end of the pause. A ruler for comparing the next leg with the pole afterwards, not a destination.
- Rising wedge
- Higher highs and higher lows converging, each push gaining less. An intact uptrend by the sequence definition until a close below its last higher low.
- Falling wedge
- Lower lows and lower highs converging, each drop smaller. An intact downtrend by the sequence definition until a close above its last lower high.
- Shrinking pushes
- Each new swing extending less than the one before. A description of how a trend is behaving; the trend itself ends only where the sequence breaks.
Finishing it pays 150 XP and 3 keys on the game board, on top of what each chapter earns. XP measures what you learned — never what you earned. How levels work.
Education only. Nothing here is a recommendation to buy or sell anything; the school teaches reading charts, never predictions.
Start with lesson one.
The first modules, Otus as your tutor and the game board are free. No card needed.