A perfect pennant

There are some powerful chart patterns that happen fairly often. One of the classics is the pennant formation, where prices compress to a point and then bounce. Today in the SP there was beautiful pennant. I've attached a graphic here which shows the pennant at the time it formed and then shows what happened. Usually a pennant results in a move up.


What I know now, based on the kind of technical analysis that I do, is that this pattern is the above ground representation of a change in momentum on several scales at once.

Stock prices are fractal, I believe. This is the reason that technical analysis works at different time scales. There are rhythms at every level of detail you want to look at. Something can be a 'buy' based on a daily scale and a 'sell' based on an hourly scale and a 'buy' based on a 10 minute scale. The central theme to my technique is to monitor the multiple levels of detail and focus on trades where things are aligned.