What Happens in Indices Trading after a Bearish Continuation Chart Pattern?

A continuation stock indices chart pattern is a market trading signal which shows the current indices trend is taking a break before resuming the current direction of the market indices.

If the indices trend is upwards a continuation stock indices chart pattern signals that the stock indices trading market is taking a pause before resuming the current upwards trend. The continuation pattern in a indices upward trend is known as a rising wedge which signals that the stock indices price is consolidation but keeps moving higher & higher forming a stock indices chart pattern that resembles a rising wedge. Traders should wait for a confirmation of this stock indices pattern before opening a trade based on this bullish continuation stock indices pattern. Once there is a indices price breakout to the upside then the continuation stock indices pattern is confirmed & indices prices will then continue to move in direction of the current upwards stock indices trend.

If the indices trend is downwards a continuation stock indices chart pattern signals that the stock indices trading market is taking a pause before resuming the current downward trend. The continuation pattern in a indices downward trend is known as a falling wedge which signals that the stock indices price is consolidation but keeps moving lower & lower forming a stock indices pattern that looks like a falling wedge. Traders should wait for a confirmation of this stock indices chart pattern before opening a trade based on this bearish continuation stock indices pattern. Once there is a indices price breakout to the downside then the continuation stock indices pattern is confirmed & indices prices will then continue to move in direction of the current downwards stock indices trend.