Commodity Trading Read Continuation Chart Patterns
Commodity Trade Continuation Chart Patterns
When commodity continuation chart patterns are formed on the commodities charts they confirm that the current trend direction is going to continue.
Continuation commodities chart patterns are used by traders to determine the halfway point of the commodity trend - this is because these commodity continuation chart patterns form at the halfway point of a commodities trend.
There are four different types of commodity continuation chart patterns:
- Ascending triangle Continuation Pattern
- Descending triangle Continuation Pattern
- Bull flag Continuation Chart Pattern
- Bear flag Continuation Chart Pattern
Commodity Trading Interpret Continuation Trading Patterns
The ascending triangle chart pattern is formed in an upwards commodity trend - it shows that the upwards commodity trend direction is going to continue.
Ascending triangle chart pattern forms as a consolidation period within the upward trend and signals upside commodity trend continuation.
Commodity Trading Interpret Continuation Patterns - How Do I Read Continuation Chart Patterns?
The commodity price formed an ascending triangle pattern during its upwards commodity trend which led to upside continuation of the upwards trend.
The buy signal is generated when price moves above the upper sloping line of the ascending triangle trading pattern.
Commodities Trading Interpret Continuation Chart Patterns
The descending triangle chart pattern is formed in a downwards trend and it shows that the downward commodity trend movement is going to continue.
The descending triangle chart pattern forms as a consolidation period within the downwards commodity trend and signals downside continuation of the downward commodity trend will follow.
Commodity Trading Interpret Continuation Trading Patterns
The commodity price formed a descending triangle pattern during its downwards commodity trend which led to a continuation of the downward commodities trend.
The sell trading signal is generated when price breaks-out the lower horizontal sloping line of the descending triangle pattern.
Commodities Trading Interpret Continuation Chart Patterns
Bull flag chart pattern forms what looks like a rectangle - formed by two parallel lines that act as support and resistance for the commodity price until the commodities price breaks out. Generally, the bull flag trading pattern will not be perfectly flat but it will be sloping.
Bull flag chart pattern occurs at halfway point of an upward commodity trend & after a commodities price break out a similar move equivalent to the height of the flagpole is expected.
Commodity Trading Analyze Continuation Chart Patterns
The Bull flag pattern shown above was just a resting period as the commodity trend which then gathered momentum to break out and move higher.
The Bull flag pattern continuation commodity signal was completed as the upper line of the Bull flag chart pattern was broken to the upside.
Commodity Trading Interpret Continuation Trading Patterns
Bear flag chart pattern flag is formed in a downwards trend.
The Bear flag chart pattern is a commodity continuation chart pattern where the price retraces slightly with a narrow price action that has a slight tilt upwards.
Commodity Trading Analyze Continuation Chart Patterns
The Bear flag chart pattern shown above was just a resting period for the commodity price prior to resuming the downwards commodities trend.
The Bear flag chart pattern commodity continuation trading signal was confirmed as the lower line of the Bear flag pattern was broken to the down-side.
Interpret Continuation Patterns
