How to Interpret Continuation Setups for Beginner Traders

Here are some common setups that show a trend will continue, which new gold traders should know and use in their trades.

Continuation Patterns

Continuation Patterns are:

Rising Wedge or Ascending Wedge Continuation Setups Patterns

A rising wedge is classified as a continuation formation that materializes during an uptrend, presenting with a shape akin to a consolidating triangle whose slope progresses distinctly upwards.

A rising wedge chart formation features support and resistance boundaries that are both sloping upwards: this particular chart configuration suggests that prices are continuing an ascent, and once prices break free from this rising wedge pattern, the upward momentum is likely to persist.

Falling Wedge/Descending Wedge Continuation Chart Setups Patterns

A falling wedge pattern signals a pause in a downtrend. It looks like a triangle with a downward slant. The pattern shows gold prices consolidating.

The falling wedge has sloping support and resistance. Prices drop inside it. Once it breaks, the downtrend likely keeps going.

Bullish Pennant or Bearish Flag Continuation Chart Setups Patterns

A Bullish Flag is a pattern on a chart with support and resistance that are parallel during an upward trend. A signal to keep going is made when the price goes above the bullish flag pattern. This bullish flag pattern then makes the signal to keep going upward.

Bearish Pennant or Bearish Flag Continuation Chart Setups Patterns

The Bearish Flag is a chart pattern characterized by parallel lines acting as support and resistance, which develops during a general downtrend. The signal to continue the downward trend is generated when the price breaks below the defined boundaries of the flag.

How to Analyze Gold Continuation Setups for Beginner Traders

Study More Lessons & Courses: