Here's a paraphrase from something that was kindly linked by Gucci on the IR thread. Directly relevant with ominous undertones.
I agree that it signalled continuation, and I was doing hope trading. Felt wrong to exit and not be in the market, while at the same time, by dint of prior experience, distinctly uncomfortable to reverse in the direction of the channel VE at the high of the day. I think bad reversals at the extremes of the day have taught me failure in that context, which I hope is not irrevocable.
The Day (n.b. ignore lowest thick black line) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2323716>
Entry and three reversals. Intrabar, (I think) bar 10 did confirm my point 3 down. If I'd mentally removed the gap, we'd be past a long traverse VE by now, which changes the situation somewhat. Even though sequence continuity may supercede geometric continuity, carrying all the lines over still feels like the natural and right thing to do. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2324559>
Reversed short on the pennant breakout after the sequence completion and Traverse VE, then back long on the subsequent formation breakout. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2324690>