Continuation Chart Patterns

 In the previous blog we have seen different types of reversal chart patterns which are effective.

In this blog let's discuss the types of continuation chart patterns.

Continuation Chart Patterns : 

1. Bull Flag :

Bull flag is the pattern where after a certain up move there is price consolidation for some amount of time and after that price starts to move upside again. Basically, there is price breakout happening after the consolidation period.

2. Bearish Flag :

Bearish flag is same as bull flag but the difference is it is formed during a down trend. After a good downtrend price consolidates for a certain time and after a breakout prices starts falling continuing a down trend.


3. Ascending Triangle:

Ascending triangles are formed during an uptrend. They are continuation patterns and shows continuation of existing trend. Upper line of the triangle pattern is horizontal while there is an another upward sloping line which complete the ascending triangle.


4. Descending Triangle

Descending Triangles is a mirror image of an ascending triangle. It is a bearish formation that usually forms as a continuation pattern during down trend. These patterns are very easy to find and to trade effectively.


5. Symmetrical Triangles

Let us now analyze what are the symmetrical triangles actually means. A symmetrical triangles is usually formed during an ongoing trend as a continuation pattern. In the below example we have taken a symmetrical triangle formation in an uptrend. Let us take a close look.


6. Pennant

Pennant looks very similar to symmetrical triangle pattern but are smaller in size. Pennants can be formed in uptrend as well as in downtrend.

7. Rectangles or Channels:

Rectangles or channels are the most common type of chart formation. It is the box like structure formation. It is very easy to find in an uptrend or downtrend and trade accordingly. Rectangles can be found out in any time frame. Trends continues on the side of the breakout of the channel pattern. It is effective in both uptrend and down trend. In fact it is my favorite chart pattern.



That's it for this blog.

See you in the next.



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