Continuation Trading Patterns

When these continuation chart patterns are formed they confirm that the current cfd trend is going to continue heading in the same direction.

These patterns are used by traders to spot half-way points of the market trend, this is because they form at the half way point of a market trend.

There are four types:

• Ascending triangle
• Descending triangle
• Bull flag/pennant
• Bear flag/pennant

Ascending Triangle

The ascending triangle is formed in an up cfd trend & it shows that the upwards direction of the market is going to continue.

It shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once it breaks cfd price will continue heading upward.

The overhead resistance temporarily prevents the cfds trading market from advancing higher, while the rising cfd trend line beneath the pattern signals that buyers are still present. An upside penetration of the upper line is a technical buy signal for a market breaking out from an ascending triangle.

Found within a CFD Trading upward trend, the ascending triangle forms as a consolidation period within the up cfd trend & indicates upside continuation will follow.

The market formed an ascending triangle during its up cfd trend which led to upside continuation. The buy point is when price clears the upper sloping line & the cfd market continues heading upward.

Descending Triangle

The descending triangle is formed in a down cfd trend & it shows that the downwards direction of cfd price movement is going to continue.

It shows that there is a support level that the sellers keep pushing each time moving it lower, and once it breaks cfd price will continue heading downward.

Support temporarily prevents the cfd market from declining, while the descending sloping line above the pattern signals that sellers are still present. A down-side penetration of the lower line is a technical sell signal for a market breaking down from a descending triangle, and this indicates selling will follow.

Found within a CFD Trading downward trend, the descending triangle forms as a consolidation period within the down cfd trend & indicates downside continuation will follow.

The market formed a descending triangle during its down cfd trend which led to further selling & continuation of the downwards cfds trend. The technical sell signal is when price breaks lower horizontal sloping line as selling resumes to push the cfd market lower.

Bull Flag/Pennant

This cfd pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the cfd price until the cfd price breaks out. In general, the flag will not be formed perfectly flat but this pattern will be formed sloping.

The bull flag is found within a CFD Trading upward trend. In this continuation pattern where the cfd market retraces slightly, it is therefore a slight retracement with narrow cfd price action which has a slight downwards tilt. The technical buy point is when price penetrates the upper line of the flag. The flag portion has highs & lows which can be connected by small lines which are parallel, and it looks like a small channel.

The pennant occurs at halfway point of a bullish upwards cfd trend and after a break out a similar move equal to the height of the flagpole is expected.

The bull pennant above was just a resting period as the cfd market gathered strength to break out and move higher. The continuation signal was confirmed as a upper line was broken to the up-side.

Bear Flag/Pennant

This flag is found in a CFD downwards trend. The bear flag is a continuation pattern where the price retraces slightly with a narrow price action which has a slight upward tilt. The technical sell point is when price penetrates the lower line of the inverted flag. The pennant portion has highs and lows which can be connected by small lines which are parallel, and it looks like a small channel.

The bear pennant above was just a resting period for the cfd market prior to more selling. Continuation signal was completed as lower line was broken to the downside.