What Happens in Stocks after a Continuation Chart Pattern in Stocks?

A continuation chart pattern is a market signal that shows the current stocks trend is taking a pause before resuming the current direction of the market stocks.

If the stocks trend is upwards a continuation chart pattern signals that the stocks market is taking a break before resuming the current upwards trend. The continuation pattern in a upward trend is known as a rising wedge which signals that the stocks price is consolidation but keeps moving higher and higher forming a stocks chart pattern that resembles a rising wedge. Traders should wait for a confirmation of this stocks pattern before opening a trade based on this bullish continuation pattern. Once there is a stocks price breakout to the upside then the continuation pattern is confirmed and stocks prices will then continue to move in the direction of the current upward stock trend.

If the stocks trend is downwards a continuation chart pattern signals that the stocks market is taking a break before resuming the current downwards trend. The continuation pattern in a downwards trend is known as a falling wedge which signals that the stocks price is consolidation but keeps moving lower & lower forming a stocks chart pattern that resembles a falling wedge. Traders should wait for a confirmation of this stocks chart pattern before opening a trade based on this bearish continuation pattern. Once there is a stocks price breakout to the downside then the continuation pattern is confirmed and stocks prices will then continue to move in the direction of the current downwards stock trend.