How Do I Analyze Continuation Trading Patterns?
How Do You Trade Continuation Chart Patterns?
When forex continuation chart patterns are formed on the forex charts they confirm that the current trend direction is going to continue.
Continuation forex chart patterns are used by traders to determine the halfway point of the forex trend - this is because these forex continuation chart patterns form at the halfway point of a forex trend.
There are four different types of forex continuation chart patterns:
- Ascending triangle Continuation Pattern
- Descending triangle Continuation Pattern
- Bull flag Continuation Chart Pattern
- Bear flag Continuation Chart Pattern
How Do I Analyze Continuation Trading Patterns?
The ascending triangle chart pattern is formed in an upwards forex trend - it shows that the upwards forex trend direction is going to continue.
Ascending triangle chart pattern forms as a consolidation period within the upward trend and signals upside forex trend continuation.
How Do You Interpret Ascending Triangle Chart Pattern
The forex price formed an ascending triangle pattern during its upwards forex trend which led to upside continuation of the upwards trend.
The buy signal is generated when price moves above the upper sloping line of the ascending triangle trading pattern.
How Do I Analyze Continuation Trading Patterns?
The descending triangle chart pattern is formed in a downwards trend and it shows that the downward forex trend movement is going to continue.
The descending triangle chart pattern forms as a consolidation period within the downwards forex trend and signals downside continuation of the downward forex trend will follow.
How Do You Interpret Descending Triangle Chart Pattern
The forex price formed a descending triangle pattern during its downwards forex trend which led to a continuation of the downward forex trend.
The sell trading signal is generated when price breaks-out the lower horizontal sloping line of the descending triangle pattern.
How Do I Analyze Continuation Trading Patterns?
Bull flag chart pattern forms what looks like a rectangle - formed by two parallel lines that act as support and resistance for the forex price until the FX price breaksout. In general, the bull flag chart pattern will not be perfectly flat but it will be sloping.
Bull flag chart pattern occurs at halfway point of an upward forex trend & after a FX price break out a similar move equivalent to the height of the flagpole is expected.
How Do You Interpret Bull Flag Chart Pattern
The Bull flag pattern shown above was just a resting period as the forex trend which then gathered momentum to break out and move higher.
The Bull flag pattern continuation forex trading signal was completed as the upper line of the Bull flag chart pattern was broken to the upside.
How Do I Analyze Continuation Trading Patterns?
Bear flag chart pattern flag is formed in a downward trend.
The Bear flag chart pattern is a forex continuation chart pattern where the price retraces slightly with a narrow price action which has a slight tilt upwards.
How Do You Interpret Bear Flag Chart Pattern
The Bear flag chart pattern shown above was just a resting period for the forex price prior to resuming the downwards forex trend.
The Bear flag chart pattern forex continuation trading signal was confirmed as the lower line of the Bear flag chart pattern was broken to the downside.
How Do I Interpret Continuation Trading Patterns?
