What are Continuation Patterns?
When these continuation chart patterns are formed on the charts they confirm that the ruling trend is going to continue moving in the same direction.
The continuation patterns are used by traders to spot halfway points of the trend, this is because they form at halfway point of a trend.
There are four types of technical analysis for continuation chart patterns:
- Ascending triangle Continuation Pattern Analysis
- Descending triangle Continuation Pattern Analysis
- Bull flag Continuation Chart Pattern Analysis
- Bear flag Continuation Chart Pattern Analysis
Technical Analysis
The ascending triangle pattern is formed in an upwards trend & it shows that upwards market direction of market is going to continue.
Found within a upwards trend, the ascending triangle pattern forms as a consolidation period within the up trend and demonstrates upside continuation will follow.
How to Analyze Rising Triangle Chart Pattern - Ascending Triangle Continuation Chart Pattern Analysis
The market formed an ascending triangle pattern during its up-wards market trend which led to up side continuation.
The buy signal point is when price clears the upper sloping line of the ascending triangle chart pattern & the market continues moving upward.
Gold Analysis
The descending triangle pattern is formed in a downwards trend & it shows that downward direction of price move is going to continue.
Found within a downwards trend, the descending triangle pattern forms as a consolidation period within the down-wards trend & demonstrates downside continuation will follow.
How to Analyze Falling Triangle Pattern - Descending Triangle Continuation Pattern Analysis
The market formed a descending triangle chart pattern during its downwards trend which led to further selling and continuation of the down-wards trend.
The technical sell signal is when the price breaks lower horizontal sloping line of the descending triangle pattern as selling resumes to push the market lower.
Technical Analysis
Bull flag pattern forms what looks like a rectangle. The rectangle is formed by 2 parallel lines that act as support & resistance for the price til the price breaks out. In general, the flag won't be formed perfectly flat but it will be slanting.
Bull flag pattern occurs at halfway point of a bullish upward market trend & after a breakout a similar move equivalent to the height of the flagpole is expected.
How to Analyze Bull Flag Pattern - Bull Flag Continuation Pattern Analysis
The Bull flag pattern setup above was just a resting period as the market gathered strength to break out and move higher.
The Bull flag pattern setup continuation signal was confirmed as upper line of the Bull flag pattern was broken to the upside.
Technical Analysis
Bear flag pattern setup flag is found in a Gold downward trend.
The Bear flag chart pattern is a continuation chart pattern where the price retraces slightly with a narrow gold price action that has a slight upward tilt.
How to Interpret Bear Flag Chart Pattern - Bear Flag Continuation Pattern Analysis
The Bear flag pattern above was just a resting period for the market before more selling.
The Bear flag chart pattern continuation trading signal was confirmed as lower line of the Bear flag pattern was broken to the downside.
