Continuation Chart Setups: Rising Triangle and Falling Triangle Setup - Bull Flag and Bear Flag Continuation Patterns

When these continuation chart patterns are formed on charts they confirm that the prevailing trend is going to continue heading in the same direction.

These continuation chart patterns are used by traders to spot halfway points of the trend, this is because continuation chart patterns form at the halfway point of a trend.

There are four types of continuation chart patterns:

• Ascending triangle
• Descending triangle
• Bull flag/pennant
• Bear flag/pennant

Rising Triangle Continuation Pattern

The ascending triangle continuation chart pattern is formed in a uptrend and it shows that the upward direction of the market price is going to continue.

>Rising Triangle Continuation chart pattern highlights that there's a resistance zone that the buyers keep pushing and each time they keep moving it higher, and once this resistance level breaks the market will continue heading and going upward.

The overhead resistance temporarily halts the market from advancing higher, while the ascending trend line beneath this continuation pattern signals that the buyers(bulls) are still present. An up side penetration of the upper line is a technical buy signal for a market breaking out from an ascending triangle continuation chart pattern.

Found within a uptrend, the ascending triangle continuation setup forms as a consolidation phase within the uptrend and indicates upside continuation of price movement will follow once price breaks to the upside of this continuation pattern.

The market developed formed an ascending triangle chart pattern during its uptrend which led to upside continuation of the upward trend move. The buy point is when price clears the upper sloping line & market continues heading upwards.

Falling Triangle Continuation Chart Pattern

The descending triangle continuation chart pattern is formed in a downtrend & it shows that downward direction of price movement is going to continue.

Falling Triangle Continuation chart pattern displays that there's a support level that the sellers keep pushing each time they keep moving it lower, & once this support zone breaks, the price will continue heading downwards.

Support temporarily halts the market from falling, while the descending sloping line above this continuation chart setup signals that sellers(bears) are still present. A down side penetration of the lower line is a technical sell signal for a market breaking down from a descending triangle chart pattern, and this demonstrates selling will follow.

Found within a downtrend, the descending triangle continuation chart pattern forms as a consolidation phase within the downtrend and indicates down-side price move continuation will follow.

The market developed formed a descending triangle continuation chart pattern during its downtrend which led to further selling & continuation of the downtrend. The technical sell signal is when price breaks lower horizontal sloping line as the selling resumes to push the market lower.

Bull Flag/Pennant Continuation Pattern

Bull Flag continuation chart pattern forms what resembles a rectangle. The rectangle is formed by two parallel lines that act as support & resistance for the price til the price breaksout. In general, the bull flag pattern will not be perfectly flat but it will be sloping. Bull Flag Pattern is also known as Bull Pennant Pattern.

The bull flag is found within a uptrend. In this bull flag continuation pattern where the market retraces a little, it's hence a slight retracement with narrow price action which has a slight downwards tilt. The technical buy point of this Bull Flag continuation chart pattern is when price penetrates the upper line of the bull flag. The flag portion has highs and lows which can be connected by small lines that are parallel, giving this bull flag pattern the look of a small channel.

The bull flag continuation occurs at half-way point of a bullish upward trend & after a price breakout a similar move equal to the height of the flagpole is expected upwards.

The bull pennant above was just a resting period as the market gathered power to break out and move higher and continue with the current upwards trend direction. The bull flag continuation trading signal was confirmed when the upper line was broken to the up-side.

Bear Flag/Pennant Continuation Pattern

Bear Flag continuation chart pattern is found in a downtrend. The bear flag setup is a continuation pattern where the price retraces slightly/a little with a narrow price action which has got a slight upward tilt. The technical sell point is when price penetrates the lower line of the inverted flag pattern. The bear flag portion has highs and lows which can be connected by small lines which are parallel, giving the bear flag pattern the look of a small channel.

The bear pennant above was just a resting period for the market before more selling. The bear pennant continuation signal was confirmed as the lower line was broken to the downside.

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