What Happens in XAUUSD Trading after a Continuation Chart Pattern in XAUUSD Trading?

A continuation chart pattern is a market signal which shows the current xauusd trend is taking a break before resuming the current direction of the market xauusd.

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

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