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

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

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

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