How Do I Trade Continuation Chart Setup? - Analysis of Continuation Patterns

Continuation Setup Patterns

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

These continuation patterns are used by traders to identify half way points of the trend, this is because they form at the half way point of a market trend.

There are four types of continuation chart patterns:

Rising triangle continuation chart pattern
Falling triangle continuation chart pattern
Bull flag/pennant continuation chart pattern
Bear flag/pennant continuation chart pattern

Rising Triangle Continuation Chart Pattern

The ascending triangle pattern is formed in an upward trend & it shows that the upward market move direction of market is going to continue.

Rising triangle pattern highlights that there's a resistance area that the buyers(bulls) keep pushing every time moving it higher, and once it breaks--out, the price will continue heading in an upward trend.

Overhead resistance temporarily prevents the market from moving higher, while the ascending trendline beneath the ascending triangle chart setup signals that the buyers(bulls) are still present. An upside penetration of the upper line of the ascending triangle pattern is a technical buy signal for a market breaking-out from an ascending triangle pattern.

Found within a upwards trend, the ascending triangle pattern forms as a consolidation period within the uptrend & indicates up side continuation will follow.

How Do You Trade Rising Triangle Setup? - Rising Triangle Continuation Setup

How Do I Trade Rising Triangle Pattern - Rising Triangle Continuation Chart Pattern

The market developed formed an ascending triangle pattern during its up-wards market trend which led to the up-side continuation.

The buy signal point is when price clears the upper sloping line of the ascending triangle chart pattern & market continues moving upwards.

Falling Triangle Continuation Chart Pattern

The descending triangle pattern is formed in a downwards trend & it shows that the downwards direction of price movement is going to continue.

Falling triangle pattern highlights that there's a support area that the sellers(bears) keep pushing every time moving it lower, & once it breaks--out, the price will continue heading and going in a downwards trend direction.

Support temporarily prevents the market from declining/falling, while the descending sloping line above the descending triangle pattern signals that sellers(bears) are still present. A down side penetration of the lower line of the descending triangle setup is a technical sell trading signal for a market breaking out downward from a descending triangle pattern, & this demonstrates selling will follow.

Found within a downwards trend, the descending triangle setup develops/forms as a consolidation period within the downward trend & demonstrates down side continuation will follow.

How to Trade Falling Triangle Pattern - Forex Descending Triangle Continuation Setup

How Do I Trade Falling Triangle Setup - Falling Triangle Continuation Chart Pattern

Market formed a descending triangle pattern during its downward trend which led to further selling & continuation of the downward trend.

The technical sell signal is when price breaks lower horizontal sloping line of the descending triangle chart pattern as selling resumes to push the market lower.

Bull Flag Continuation Chart Pattern

Bull flag pattern forms what resembles a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the price until the price breaks out. In general, the flag won't be formed perfectly flat but this pattern will be formed slanting.

The bull flag pattern setup is found within a upwards trend. In this continuation pattern where the price retraces a little, it's hence a slight retracement with narrow price action which has got a slight downwards tilt.

The technical buy signal is when the price penetrates the upper line of the Bull flag pattern. The flag portion has highs & lows that can be linked by small lines that are parallel, and it resembles a small channel.

Bull flag chart pattern occurs at half-way point of a bullish upward FX market trend & after a trading break out a similar move equal to the height of the flagpole is then expected.

How Do I Trade Bull Flag Chart Trade Setup? - Bull Flag Continuation Pattern

How Do You Trade Bull Flag Pattern - Bull Flag Continuation Chart Pattern

The Bull flag chart setup above was just a resting phase as the market gathered momentum to break out & move higher.

The Bull flag pattern setup continuation signal was completed as the upper line of the Bull flag chart pattern was broken to the up-side.

Bear Flag Continuation Chart Pattern

Bear flag pattern setup flag is found in a downwards trend.

The Bear flag setup is a continuation chart pattern where the price retraces a little with a narrow price action which has got a slight upward tilt.

The technical sell signal is when the price penetrates the lower line of the inverted flag. The flag portion has highs & lows that can be linked by small lines that are parallel, and it resembles a small channel.

How to Trade Bear Flag Pattern - Bear Flag Continuation Pattern

How Do I Trade Bear Flag Pattern - Bear Flag Continuation Chart Pattern

The Bear flag chart pattern above was just a resting period for market prior to more selling.

The Bear flag pattern continuation signal was confirmed as the lower line of the Bear flag chart pattern was broken to the down-side.

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