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Continuation Stock Trading Chart Patterns

When these continuation stocks chart patterns are formed they confirm that the current stock trend is going to continue moving in the same direction.


These patterns are used by stocks traders to identify halfway points of the trend, this is because they form at the halfway point of a trend.


There are four types:


  • Ascending triangle

  • Descending triangle

  • Bull flag/pennant

  • Bear flag/pennant


Ascending Triangle

The ascending triangle is formed in an up stock trend and it shows that the upward direction of the stocks trading market is going to continue.


It shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once it breaks stocks price will continue moving upward.


The overhead resistance temporarily prevents the stocks trading market from advancing higher, while the rising stock trend line beneath the pattern signals that buyers are still present. An upside penetration of the upper line is a technical buy stock signal for a market breaking out from an ascending triangle.


Found within a Stock upward stock trend, the ascending triangle forms as a consolidation period within the up stock trend and indicates upside continuation will follow.

Ascending Triangle Stock Trading Chart Pattern Stock Trading



The market formed an ascending triangle during its up stock trend which led to upside continuation. The buy point is when stocks price clears the upper sloping line and the stocks trading market continues moving upwards.



Descending Triangle

The descending triangle is formed in a down stock trend and it shows that the downward direction of stocks price movement is going to continue.


It shows that there is a support level that the sellers keep pushing each time moving it lower, and once it breaks stocks price will continue moving downwards.


The support temporarily prevents the stocks trading market from declining, while the descending sloping line above the pattern signals that sellers are still present. A downside penetration of the lower line is a technical sell stock signal for a market breaking down from a descending triangle, and indicates selling will follow.


Found within a Stocks downward stock trend, the descending triangle forms as a consolidation period within the down stock trend and indicates downside continuation will follow.

Descending Triangle Continuation Stock Trading Chart Pattern Trading



The market formed a descending triangle during its down stock trend which led to further selling and continuation of the downward stocks trend. The technical sell stock signal is when stocks price breaks the lower horizontal sloping line as selling resumes to push the stocks trading market lower.


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Bull Flag/Pennant

This stock trading pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the stocks price until the stocks price breaks out. In general, the flag will not be perfectly flat but it will be sloping.


The bull flag is found within a Stock upward stocks trend. In this continuation pattern where the stocks trading market retraces slightly, it is therefore a slight retracement with narrow stocks price action that has a slight downward tilt. The technical buy point is when stocks price penetrates the upper line of the flag. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.


The pennant occurs at halfway point of a bullish upward stock trend and after a breakout a similar move equal to the height of the flagpole is expected.

Bull Flag Continuation Stock Trading Chart Pattern Stock Trading



The bull pennant above was just a resting period as the stocks trading market gathered strength to break out and move higher. The continuation signal was confirmed as the upper line was broken to the upside.



Bear Flag/Pennant

This flag is found in a Stock downward stocks trend. The bear flag is a continuation pattern where the stocks price retraces slightly with a narrow stocks price action that has a slight upward tilt. The technical sell point is when stocks price penetrates the lower line of the inverted flag. The pennant portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.

Bear Flag Continuation Stock Trading Chart Pattern Stock Trading



The bear pennant above was just a resting period for the stocks trading market prior to more selling. The continuation signal was confirmed as the lower line was broken to the downside.

 

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