What are Stocks Continuation Chart Patterns?
When these continuation trading patterns are formed on the stock charts they confirm that the current stock trend is going to continue heading in same direction.
These continuation stocks patterns are used by traders to identify half way points of the stocks trend, this is because they form at the half way point of a stock trend.
There are four types of technical analysis for continuation chart patterns:
- Ascending triangle Continuation Pattern Technical Analysis
- Descending triangle Continuation Pattern Technical Analysis
- Bull flag Continuation Chart Pattern Technical Analysis
- Bear flag Continuation Chart Pattern Technical Analysis
Ascending Triangle Continuation Trading Pattern
The ascending triangle chart pattern is formed in an upwards stocks trend & it shows that the upwards stocks market direction of the market is going to continue.
Found within a Stocks upwards trend, the ascending triangle pattern forms as a consolidation period within the up trend & indicates upside continuation will follow.
How to Analyze Ascending Triangle Pattern - Ascending Triangle Continuation Chart Pattern Technical Analysis
The market formed an ascending triangle pattern during its upwards stocks market stocks trend which led to up-side continuation.
The buy signal point is when price clears the upper sloping line of the ascending triangle pattern and the stocks market continues heading upward.
Descending Triangle Continuation Trading Pattern
The descending triangle chart pattern is formed in a downwards trend & it shows that the downwards direction of stocks price movement is going to continue.
Found within a Stocks downwards trend, the descending triangle pattern forms as a consolidation period within the downwards stocks trend and indicates downside continuation will follow.
How to Analyze Descending Triangle Pattern - Descending Triangle Continuation Chart Pattern Technical Analysis
Market formed a descending triangle chart pattern during its downwards stocks trend which led to further selling & continuation of the downward stock trend.
The technical sell signal is when price breaks lower horizontal sloping line of the descending triangle pattern as selling resumes to push the stocks market lower.
Bull Flag Continuation Trading Pattern
Bull flag chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for stocks price until the stocks price breaks out. Generally, the flag will not be formed perfectly flat but this pattern will be formed sloping.
Bull flag pattern occurs at halfway point of a bullish upward stocks market stocks trend & after a breakout a similar move equal to the height of the flagpole is expected.
How to Analyze Bull Flag Pattern - Bull Flag Continuation Chart Pattern Technical Analysis
The Bull flag pattern above was just a resting period as the stocks market gathered strength to break-out & 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 Trading Pattern
Bear flag pattern flag is found in a Stock downwards trend.
The Bear flag pattern is a continuation chart pattern where the price retraces slightly with a narrow price action which has a slight upward tilt.
How to Analyze Bear Flag Pattern - Bear Flag Continuation Chart Pattern Technical Analysis
The Bear flag chart pattern above was just a resting period for stocks market prior to more selling.
The Bear flag pattern continuation signal was confirmed as lower line of the Bear flag chart pattern was broken to the down-side.
