 I'm going to show you how to increase your odds when trading the pennant. According to textbooks, it signals continuation, but you've no doubt realized it's not that simple. They come in all shapes and sizes, but don't worry, the exact angle or number of trend line touches isn't that important. Instead, focus on what drives the market, the order book. This heat map shows how limit orders have changed over time. The brighter the shade, the more orders or liquidity is waiting at that price level. Do you think this pennant will play out, or do you think it will fail? Well, let's take a look. You can see orders being added on the bid here, and whoever was sitting here with a 200 contract sell order pulled out. Is this the type of order flow you'd expect for a continuation to the downside? With enough practice and backtesting, do you think you could see this happening ahead of time?