Trend Continuation Patterns
When a trader encounters a Continuation Pattern, he 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 moving. The following discusses these briefly:
This price pattern serves existing trend confirmation. This is formed during a downtrend. As this is the case, the trend’s direction will win over after its occurrence.
This is used for existing trend confirmation. This is formed during an uptrend. The trend’s direction will win over after its occurrence.
This is seen during an uptrend existing direction confirmation.
This is usually formed amid a downtrend for existing direction confirmation.
This illustrates the previous direction. It will prevail in the long run after its formation. The pattern is usually formed within a week for daily charts.
This model shows the previous direction. It will prevail after its formation in the long run. This pattern is usually formed within a week for daily charts.
This may be formed in both uptrends and downtrends. The direction of the trend that comes before the pattern’s appearance is confirmed through its occurrence.
A Wedge is determined by Trend Lines meeting on a price chart. The highs and lows of a price series, from 10 to 50 periods, are 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.