Trend Continuation Patterns

When a trader encounters a Continuation Patternhe or she is informed that the price will carry on moving in the same path after said pattern is completed as before.

 Technical Analysts use such to make them privy to how prices keep movingThe following discusses these briefly:


Bearish Rectangle
This price pattern serves existing trend confirmationThis is formed during a downtrendAs this is the casethe trends direction will win over after its occurrence.

Bullish Rectangle
This is used for existing trend confirmationThis is formed during an uptrendThe trends direction will win over after its occurrence.

Ascending Triangle
This is seen during an uptrend existing direction confirmation.

Descending Triangle
This is usually formed amid a downtrend for existing direction confirmation.

Flag Chart
This illustrates the previous directionIt will prevail in the long run after its formationThe pattern is usually formed within a week for daily charts.

Pennant Chart
This model shows the previous directionIt will prevail after its formation in the long runThis pattern is usually formed within a week for daily charts.

Symmetrical Triangle
This may be formed in both uptrends and downtrendsThe direction of the trend that comes before the patterns appearance is confirmed through its occurrence.

Wedge Chart
A Wedge is determined by Trend Lines meeting on a price chartThe highs and lows of a price seriesfrom 10 to 50 periodsare connected by these Trend Lines.

The wedge appears as the lines approaching the convergence as these lines show either the rising or falling and differing rates.

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