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:

Bearish Rectangle
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.

Bullish Rectangle
This is used for existing trend confirmation. This is formed during an uptrend. The trend’s direction will win over after its occurrence.

Ascending Triangle
This is seen during an uptrend existing direction confirmation.

Descending Triangle
This is usually formed amid a downtrend for existing direction confirmation.

Flag Chart
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.

Pennant Chart
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.

Symmetrical Triangle
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.

Wedge Chart
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.