What Happens in Commodity Trading after a Bullish Continuation Chart Pattern?

A continuation pattern is a market trading signal that shows the current commodity trend is taking a break before resuming the current direction of the market commodity.

If the commodity trend is upwards a continuation chart pattern signals that the commodities trading market is taking a break before resuming the current upwards trend. The continuation pattern in a commodity upward trend is known as a rising wedge which signals that the commodity price is consolidation but keeps moving higher & higher forming a commodities chart pattern that resembles a rising wedge. Traders should wait for a confirmation of this commodities chart pattern before opening a trade based on this bullish continuation pattern. Once there is a commodity price breakout to the upside then the continuation pattern is confirmed & commodity prices will then continue to move in direction of the current upwards commodities trend.

If the commodity trend is downwards a continuation chart pattern signals that the commodities trading market is taking a break before resuming the current downward trend. The continuation pattern in a commodity downward trend is known as a falling wedge which signals that the commodity price is consolidation but keeps moving lower & lower forming a commodities pattern that looks like a falling wedge. Traders should wait for a confirmation of this commodities pattern before opening a trade based on this bearish continuation chart pattern. Once there is a commodity price breakout to the downside then the continuation pattern is confirmed & commodity prices will then continue to move in direction of the current downwards commodities trend.