How to Trade the Continuation Chart Patterns
Continuation Trading Patterns
When these continuation chart patterns are formed on the commodity charts they confirm that the current Commodity Trading trend is going to continue heading in the same direction.
These continuation patterns are used by traders to spot halfway points of the commodity trend, this is because they form at halfway point of a commodities trend.
There are four types of continuation trading patterns:
- Ascending triangle continuation chart pattern
- Descending triangle continuation trading pattern
- Bull flag/pennant continuation chart pattern
- Bear flag/pennant continuation trading pattern
Ascending Triangle Continuation Chart Pattern
The ascending triangle pattern is formed in an upward commodity trend & it shows that upwards commodity market direction of the market is going to continue.
Ascending triangle pattern shows that there is a resistance level that the buyers keep pushing each time moving it higher, & once it breaks-out commodity price will continue moving in an upward commodities trend.
The overhead resistance temporarily prevents the commodities trading market from advancing higher, while the rising commodity trend line beneath the ascending triangle chart pattern signals that buyers are still present. An upside penetration of the upper line of the ascending triangle chart pattern is a technical buy trading signal for a market breaking out from an ascending triangle pattern.
Found within a Commodity Trading upwards trend, the ascending triangle pattern forms as a consolidation period within the up commodity trend and indicates upside continuation will follow.
How to Trade Ascending Triangle Pattern - Ascending Triangle Continuation Chart Pattern
The market formed an ascending triangle pattern during its upwards commodity market trading trend which led to upside continuation.
The buy signal point is when price clears the upper sloping line of the ascending triangle chart pattern and the commodities trading market continues heading upward.
Descending Triangle Continuation Chart Pattern
The descending triangle pattern is formed in a downward trend and it shows that the downward direction of commodity price movement is going to continue.
Descending triangle chart pattern shows that there is a support level that the sellers keep pushing each time moving it lower, & once it breaks-out commodity price will continue moving in a downwards trend direction.
Support temporarily prevents the commodities trading market from declining, while the descending sloping line above the descending triangle chart pattern signals that sellers are still present. A downside penetration of the lower line of the descending triangle pattern is a technical sell signal for a market breaking down from a descending triangle pattern, and this indicates selling will follow.
Found within a Commodity Trading downwards trend, the descending triangle pattern forms as a consolidation period within the downward commodity trend & indicates downside continuation will follow.
How to Trade Descending Triangle Pattern - Descending Triangle Continuation Chart Pattern
The market formed a descending triangle chart pattern during its downwards commodity trend which led to further selling & continuation of the downward commodities trend.
The technical sell signal is when price breaks lower horizontal sloping line of the descending triangle chart pattern as selling resumes to push the commodities trading market lower.
Bull Flag Continuation Chart Pattern
Bull flag pattern forms what looks like a rectangle. Rectangle is formed by 2 parallel lines that act as support and resistance for the commodity price until the commodity price breaks out. In general, the flag will not be formed perfectly flat but it will be formed sloping.
The bull flag pattern is found within a Commodity upward trend. In this continuation chart pattern where the commodities market retraces slightly, it is therefore a slight retracement with narrow commodity price action that has a slight downward tilt.
The technical buy signal is when price penetrates the upper line of the Bull flag pattern. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
Bull flag chart pattern occurs at halfway point of a bullish upwards commodities market trend & after a break out a similar move equal to the height of the flagpole is then expected.
How to Trade Bull Flag Pattern - Bull Flag Continuation Chart Pattern
The Bull flag chart pattern above was just a resting period as the commodities trading market gathered strength to break out & move higher.
The Bull flag chart pattern continuation commodity signal was confirmed as upper line of the Bull flag chart pattern was broken to the upside.
Bear Flag Continuation Chart Pattern
Bear flag pattern flag is found in a Commodity Trading downward trend.
The Bear flag pattern is a continuation chart pattern where the price retraces slightly with a narrow price action that has a slight upward sloping tilt.
The technical sell signal is when price penetrates the lower line of the inverted flag. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
How to Trade Bear Flag Pattern - Bear Flag Continuation Chart Pattern
The Bear flag chart pattern above was just a resting period for the commodities trading market prior to more selling.
The Bear flag chart pattern continuation signal was completed as lower line of the Bear flag pattern was broken to the downside.
