How Do I Trade the Continuation Chart Patterns
Continuation Patterns
When these continuation patterns are formed on the charts they confirm that the ruling trend is going to continue moving in same direction.
These continuation patterns are used by stock traders to spot halfway points of the trend, this is because they form at half-way point of a trend.
There are four types of continuation stock trading chart patterns:
- Rising triangle continuation stock trading chart pattern
- Falling triangle continuation trading pattern
- Bull flag/pennant continuation stock trading chart pattern
- Bear flag/pennant continuation trading pattern
Rising Triangle Continuation Pattern
The ascending triangle chart pattern is formed in an upwards trend & it shows that upwards market direction of market is going to continue.
Rising triangle chart pattern highlights that there's a resistance area that the buyers keep pushing each time moving it higher, & once it breaks-out price will continue moving in an upward trend.
Overhead resistance temporarily prevents the market from advancing higher, while the ascending trend line beneath the ascending triangle pattern signals that buyers are still present. An upside penetration of the upper line of the ascending triangle chart pattern is a technical buy signal for a market breaking out from an ascending triangle pattern.
Found within a Trading upward trend, the ascending triangle pattern forms as a consolidation period within up trend & demonstrates upside continuation will follow.
How Do I Trade Rising Triangle Chart Pattern - Rising Triangle Continuation Pattern
The market formed an ascending triangle pattern during its up-wards market trend which led to up side continuation.
The buy signal point is when price clears the upper sloping line of the ascending triangle pattern & the market continues moving upwards.
Falling Triangle Continuation Pattern
The descending triangle chart pattern is formed in a downwards trend & it displays that the down-wards direction of price move is going to continue.
Falling triangle chart pattern highlights that there's a support area that the sellers keep pushing each time moving it lower, & once it breaks trading price will continue moving in a downwards trend direction.
Support temporarily prevents the market from declining, while the descending sloping line above the descending triangle chart pattern signals that sellers are still present. A downside penetration of the lower line of the descending triangle pattern is a technical sell signal for a market breaking down from a descending triangle pattern, and this demonstrates selling will follow.
Found within a Trading downward trend, descending triangle pattern forms as a consolidation period within downward trend & demonstrates downside continuation will follow.
How Do I Trade Falling Triangle Pattern - Falling Triangle Continuation Pattern
Market formed a descending triangle pattern during its downwards trend which led to further selling & continuation of the down-wards trend.
The technical sell signal is when price breaks out the lower horizontal sloping line of the descending triangle pattern as selling resumes to push the market lower.
Bull Flag Continuation Pattern
Bull flag chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the price until the price breaks out. In general, the flag will not be formed perfectly flat but it will be formed sloping.
The bull flag chart pattern is found within a upwards trend. In this continuation chart pattern where the market pulls back slightly, it's therefore a slight retracement with narrow price action which has a slight down-wards tilt.
The technical buy signal is when the 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 what resembles a small channel.
Bull flag pattern occurs at halfway point of a bullish upward market trend and after a break out a similar move equal to the height of the flag-pole is expected.
How Do You Trade Bull Flag Pattern - Bull Flag Continuation Pattern
The Bull flag pattern above was just a resting period as the market gathered strength to break out & move higher.
The Bull flag chart pattern continuation signal was confirmed as the upper line of the Bull flag pattern was broken to the upside.
Bear Flag Continuation Pattern
Bear flag chart pattern flag is found in a downwards trend.
The Bear flag chart pattern is a continuation chart pattern where the price retraces slightly with a narrow price action which has a slight upwards tilt.
The technical sell signal is when the price penetrates the lower line of the inverted flag. The flag portion has highs & lows which can be connected by small lines which are parallel, giving it what resembles a small channel.
How Do I Trade Bear Flag Chart Pattern - Bear Flag Continuation Pattern
The Bear flag pattern above was just a resting period for the market before more selling.
The Bear flag chart pattern continuation signal was confirmed as the lower line of the Bear flag pattern was broken to the down-side.
