Types of Continuation Patterns
This chart pattern appears as a signal for the continuation of the price from the previous trend. The chart pattern technique in the continuation pattern is very useful for filtering signals that identify price deviations from the main trend as a temporary correction. That is, after the pattern has finished forming, the price will most likely return to the previous main trend. A continuation candlestick pattern is a candlestick pattern that shows a pause in the trend and then the trend will continue again.
Here are the categories of forwarding patterns:
Ascending Triangle Pattern
The ascending triangle is characterized by a lower low price, while the high tends to be stable. This indicates the strength of the seller but the position of the buyer is still solid. It means that the correction of the uptrend will end and the price will continue in the bullish trend.
Descending Triangle Pattern
Signals in this pattern tend to experience a continuation of the downtrend. Contrary to the ascending triangle pattern, the descending triangle will depict a high that continues to decline, and a relatively stable low. In this condition, the strength of buyers weakens so that the price will soon enter into a bearish trend.
Bullish Flag Pattern
Signals in this technique tend to experience a continuation of the uptrend. This flag-like chart pattern experiences a price spike that acts as a 'pole', and the subsequent correction serves as a 'flag'.
This technique focuses on bullish flags, and warns to be aware of price movements that appear to be down in the midst of an uptrend. If the weakening begins with a significant strengthening, the price is forming a bullish flag pattern and the decline is a temporary correction.
Bearish Flag Pattern
The signal in this technique is experiencing a continuation of the downtrend. It has a basic understanding similar to bullish flags in technical analysis, but this technique uses a decline as a 'pole' and an upward correction as a 'flag'. This pattern indicates a signal for the continuation of the downtrend.
Pennant bullish pattern
Signals in this technique tend to experience a continuation of the uptrend. This pattern combines elements of the flag and triangle patterns. The bullish pennant has a 'pole' because it was preceded by a price strengthening which was then followed by a correction with a high-low pattern that formed a triangle.
Bearish Pennant Pattern
The signal in this technique is experiencing a continuation of the downtrend. In contrast to the bullish pennant, the bearish pennant pattern combines the components of the triangle pattern and the flag of the price decline.
Bullish Wedge Pattern
The signal in this technique is experiencing a continuation of the uptrend. Similar to the pennant condition, the wedge also has a pole and is followed by a corrective pattern but is shaped like a triangle pattern and is in the opposite direction to the trend, so technical analysis will pay attention to the bullish wedge with the price correction moving downwards. The chart pattern technique with the bullish wedge is based on market conditions in the form of sellers who try to dominate but fail because the price is in a bullish sentiment.
Bearish Wedge Pattern
This chart pattern technique signal is experiencing a continuation of the downtrend. Contrary to the bullish wedge pattern, this pattern appears when the price trend is dominated by bearish sentiment. It was marked by a correction that attempted to increase the price, but failed and the price continued to have a downtrend.
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