Continuation Patterns
Continuation patterns in trading evaluate the performance and outcomes of trading strategies by identifying price formations that signal the trend will persist. Here are some of the most commonly used continuation patterns:
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Continuation patterns are like green lights on the trading highway, confirming the trend’s momentum and guiding traders to ride the wave!
- Flags and Pennants: Short-term consolidation patterns that signal a brief pause before the trend resumes, often with sharp breakouts.
- Rectangles and Triangles: Represent periods of indecision that resolve in the direction of the prevailing trend, such as ascending or Symmetrical Triangle.
- Special Patterns: Unique formations like Cup and Handle or wedges that reinforce trend continuation with distinct characteristics.