Stocks Trading Interpret Continuation Chart Patterns
How Do You Interpret Continuation Chart Patterns?
When continuation chart patterns are formed on the stocks charts they confirm that the current trend direction is going to continue.
Continuation stocks chart patterns are used by traders to determine the halfway point of the stocks trend - this is because these continuation chart patterns form at the halfway point of a stocks trend.
There are four different types of stocks trading continuation trading patterns:
- Ascending triangle Continuation Chart Pattern
- Descending triangle Continuation Chart Pattern
- Bull flag Continuation Pattern
- Bear flag Continuation Pattern
Ascending Triangle Continuation Chart Pattern
The ascending triangle chart pattern is formed in an upwards stocks trend - it shows that the upwards stocks trend direction is going to continue.
Ascending triangle chart pattern forms as a consolidation period within the upward trend and signals upside stocks trend continuation.
How Do I Analyze Ascending Triangle Chart Pattern
The stocks price formed an ascending triangle pattern during its upward stocks 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 chart pattern.
Descending Triangle Continuation Chart Pattern
The descending triangle chart pattern is formed in a downwards trend and it shows that the downward stocks trend movement is going to continue.
The descending triangle chart pattern forms as a consolidation period within the downwards stocks trend and signals downside continuation of the downward stocks trend will follow.
How Do I Analyze Descending Triangle Chart Pattern? - How Do I Interpret Continuation Chart Patterns
The stocks price formed a descending triangle chart pattern during its downwards stocks trend which led to a continuation of the downward stocks trend.
The sell signal is generated when price breaks out the lower horizontal sloping line of the descending triangle chart pattern.
Bull Flag Continuation Chart Pattern
Bull flag chart pattern forms what looks like a rectangle - formed by two parallel lines that act as support and resistance for the stocks price until the stocks price breaks-out. 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 stocks trend and after a stocks price breakout a similar move equal to the height of the flagpole is expected.
How Do I Analyze Bull Flag Chart Pattern? - How Do You Analyze Continuation Chart Patterns
The Bull flag chart pattern shown above was just a resting period as the stocks trend which then gathered momentum to break out and move higher.
The Bull flag chart pattern continuation stocks trading signal was confirmed as upper line of the Bull flag pattern was broken to the upside.
Bear Flag Continuation Chart Pattern
Bear flag chart pattern flag is formed in a stocks trading downward trading trend.
The Bear flag pattern is a continuation chart pattern where the price retraces slightly with a narrow price action which has a slight tilt upwards.
How Do I Analyze Bear Flag Chart Pattern? - How Do You Analyze Continuation Chart Patterns
The Bear flag chart pattern shown above was just a resting period for the stocks price prior to resuming the downwards stocks trend.
The Bear flag chart pattern stocks trading continuation trading signal was confirmed as the lower line of the Bear flag pattern was broken to the down-side.
Stocks Trading Interpret Continuation Chart Patterns
