How to Read Continuation Chart Patterns
Indices Trade Continuation Chart Patterns
When indices continuation stock indices chart patterns are formed on the stock indices charts they confirm that the current trend direction is going to continue.
Continuation stock indices chart patterns are used by stock indices traders to determine the halfway point of the indices trend - this is because these indices continuation stock indices chart patterns form at the halfway point of a stock indices trend.
There are four different types of indices continuation stock indices trading patterns:
- Ascending triangle Continuation Pattern
- Descending triangle Continuation Pattern
- Bull flag Continuation Chart Pattern
- Bear flag Continuation Chart Pattern
How to Read Continuation Chart Patterns
The ascending triangle stock indices chart pattern is formed in an upwards indices trend - it shows that the upwards indices trend direction is going to continue.
Ascending triangle stock indices chart pattern forms as a consolidation period within the upward trend and signals upside indices trend continuation.
How to Read Continuation Stock Indices Chart Patterns?
The stock indices price formed an ascending triangle stock indices pattern during its upwards indices trend which led to upside continuation of the upward stock indices trend.
The buy stock indices signal is generated when stock indices price moves above the upper sloping line of the ascending triangle stock indices trading chart pattern.
How to Read Continuation Stock Indices Chart Patterns
The descending triangle stock indices chart pattern is formed in a downwards trend and it shows that the downward indices trend movement is going to continue.
The descending triangle stock indices chart pattern forms as a consolidation period within the downwards indices trend and signals downside continuation of the downward indices trend will follow.
How to Read Continuation Chart Patterns
The stock indices price formed a descending triangle stock indices pattern during its downwards indices trend which led to a continuation of the downward stock indices trend.
The sell stock indices signal is generated when stock indices price breaks out the lower horizontal sloping line of the descending triangle stock indices trading pattern.
How to Read Continuation Stock Indices Chart Patterns
Bull flag stock indices chart pattern forms what looks like a rectangle - formed by two parallel lines that act as support and resistance for the stock indices price until the stock indices price breaks out. Generally, the bull flag stock indices trading pattern will not be perfectly flat but it will be sloping.
Bull flag stock indices chart pattern occurs at halfway point of an upward indices trend & after a indices price breakout a similar move equivalent to the height of the flagpole is expected.
How to Trade Continuation Patterns?
The Bull flag stock indices pattern shown above was just a resting period as the indices trend which then gathered momentum to break out and move higher.
The Bull flag stock indices chart pattern continuation stock indices signal was confirmed as the upper line of the Bull flag stock indices chart pattern was broken to the upside.
How to Read Continuation Stock Indices Chart Patterns
Bear flag stock indices chart pattern flag is formed in a downward trend.
The Bear flag stock indices chart pattern is a indices continuation stock indices chart pattern where the stock indices price retraces slightly with a narrow stock indices price action that has a slight tilt upwards.
How to Trade Continuation Patterns?
The Bear flag stock indices chart pattern shown above was just a resting period for the stock indices price prior to resuming the downwards stock indices trend.
The Bear flag stock indices chart pattern indices continuation trading signal was confirmed as the lower line of the Bear flag stock indices chart pattern was broken to the down-side.
How to Read Continuation Stock Indices Chart Patterns
