How to Trade the Continuation Stock Indices Chart Patterns

Continuation Indices Chart Patterns

When these continuation stock indices chart patterns are formed on the indices charts they confirm that the current Indices trend is going to continue moving in the same direction.

These continuation indices patterns are used by stock indices traders to identify halfway points of the indices trend, this is because they form at the halfway point of a stock indices trend.

There are four types of continuation stock indices chart patterns:

• Ascending triangle continuation stock indices chart pattern
• Descending triangle continuation stock indices chart pattern
• Bull flag/pennant continuation stock indices chart pattern
• Bear flag/pennant continuation stock indices chart pattern

Ascending Triangle Continuation Indices Chart Pattern

The ascending triangle stock indices chart pattern is formed in an upward indices trend and it shows that the upward stock indices market direction of the stock indices trading market is going to continue.

Ascending triangle stock indices chart pattern shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once it breaks stock indices price will continue moving in an upward indices trend.

The overhead resistance temporarily prevents the stock indices trading market from advancing higher, while the rising indices trend line beneath the ascending triangle stock indices chart pattern signals that buyers are still present. An upside penetration of the upper line of the ascending triangle stock indices chart pattern is a technical buy stock indices signal for a market breaking out from an ascending triangle pattern.

Found within a Indices Trading upward trend, the ascending triangle pattern forms as a consolidation period within the indices up trend and indicates upside continuation will follow.

How to Trade Ascending Triangle Stock Indices Chart Pattern - Ascending Triangle Continuation Indices Chart Pattern

The market formed an ascending triangle pattern during its upward stock indices market indices trend which led to upside continuation.

The buy stock indices signal point is when stock indices price clears the upper sloping line of the ascending triangle stock indices chart pattern and the stock indices trading market continues moving upwards.

Descending Triangle Continuation Indices Chart Pattern

The descending triangle stock indices chart pattern is formed in a downward indices trend and it shows that the downward direction of stock indices price movement is going to continue.

Descending triangle stock indices chart pattern shows that there is a support level that the sellers keep pushing each time moving it lower, and once it breaks stock indices price will continue moving in a downwards indices trend direction.

The support temporarily prevents the stock indices trading market from declining, while the descending sloping line above the descending triangle stock indices chart pattern signals that sellers are still present. A downside penetration of the lower line of the descending triangle pattern is a technical sell stock indices signal for a market breaking down from a descending triangle pattern, and indicates selling will follow.

Found within a Indices Trading downward trend, the descending triangle pattern forms as a consolidation period within the downward indices trend and indicates downside continuation will follow.

How to Trade Descending Triangle Indices Chart Pattern - Descending Triangle Continuation Indices Chart Pattern

The market formed a descending triangle stock indices chart pattern during its downward indices trend which led to further selling and continuation of the downward indices trend.

The technical sell stock indices signal is when stock indices price breaks the lower horizontal sloping line of the descending triangle stock indices chart pattern as selling resumes to push the stock indices trading market lower.

Bull Flag Continuation Indices Chart Pattern

Bull flag stock indices chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the stock indices price until the stock indices price breaks out. In general, the flag will not be perfectly flat but it will be sloping.

The bull flag stock indices chart pattern is found within a Indices Trading upward trend. In this continuation stock indices chart pattern where the stock indices trading market retraces slightly, it is therefore a slight retracement with narrow stock indices price action that has a slight downward tilt.

The technical buy stock indices signal is when stock indices price penetrates the upper line of the Bull flag pattern. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.

Bull flag stock indices chart pattern occurs at halfway point of a bullish upward stock indices market indices trend and after a breakout a similar move equal to the height of the flagpole is expected.

How to Trade Bull Flag Indices Chart Pattern - Bull Flag Continuation Indices Chart Pattern

The Bull flag stock indices chart pattern above was just a resting period as the stock indices trading market gathered strength 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.

Bear Flag Continuation Indices Chart Pattern

Bear flag stock indices chart pattern flag is found in a Indices Trading downward trend.

The Bear flag stock indices chart pattern is a continuation stock indices chart pattern where the stock indices price retraces slightly with a narrow stock indices price action that has a slight upward tilt.

The technical sell stock indices signal is when stock indices price penetrates the lower line of the inverted flag. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.

How to Trade Bear Flag Indices Chart Pattern - Bear Flag Continuation Indices Chart Pattern

The Bear flag stock indices chart pattern above was just a resting period for the stock indices trading market prior to more selling.

The Bear flag stock indices chart pattern continuation signal was confirmed as the lower line of the Bear flag stock indices chart pattern was broken to the downside.