It occurs when the trend continues in its existing direction following a brief pause.

The phenomenon you are describing is known as a "Continuation Pattern" in technical analysis, often observed in financial markets. Following a brief pause or consolidation period, the asset tends to resume the prevailing trend, which indicates that the initial momentum is still intact.

Continuation patterns can take various shapes, commonly including:

1. Flags: These appear after a strong price movement, followed by a rectangular consolidation area that slopes against the prevailing trend. Once this pattern breaks out, the price typically resumes in the direction of the initial movement.

2. Pennants: Similar to flags but typically formed after a sharp price movement, these feature converging trendlines (like a triangle), indicating a brief pause before the previous trend resumes.

3. Triangles: These can be ascending, descending, or symmetrical, and they suggest indecision in the market. However, they often break in the direction of the previous trend.

Traders and analysts often look for these patterns as indicators of potential buying or selling opportunities, reinforcing the prior trend's strength. It's fundamentally important to confirm the breakout with volume and other indicators to enhance the reliability of the continuation signal.