What is a continuation pattern’
A continuation pattern suggests that the trend in price, safety series schedule is expected to continue. There are several models continue that technical analysts will define as the indicator of long-term price trend.
Breaking down the ‘continuation pattern’
The figures tend to be most accurate when the trend has existed for about three months. These models show some stalling in the trend, but should not indicate a reversal. (See. also: continuation: Introduction)
Some common continuation patterns include triangles, pennants, flags and rectangles. Below are descriptions of these figures continue.
Triangles: triangles can be easily confused with wedges, and are the basis for the pennants. In the model triangle, resistant and support lines opposite slopes with one reporting a negative slope and the other a positive slope. In a continuation pattern of the triangle inclined lines are clearly to join in a convergence point. Triangles can be symmetrical, ascending or descending. Bars slanted lines are usually a little more time than pennant. (For more on the model of the triangle see also: analysis of graphical models of triangle)
Pennants: a pennant is a triangle shape, as well as reporting the opposite sloping line. However, the pennants will be shorter trend lines. Usually, the pennants will be the connection of the bars which cover approximately 20 days. This is comparable to the triangles, which have a more gentle line. (For more on the pennant, see also the analysis of chart patterns: flags and pennants)
Flags: flags are represented by two short parallel lines. Flags can be ascending or descending. Flags show the volatility that can occur within a price trend.
Quadrilaterals: rectangles are a common continuation pattern that shows a pause in the price trend of the price moving average. The template rectangle is drawn with two zero sloping parallel trend lines. These lines are drawn on the levels of support and resistance to determine the lateral movement, which means that the trend of the series has just paused and is likely to continue.
Model Continue Reasoning
Continuation patterns can be an important Place for both long-term and short-term traders. They provide the trader with the understanding that the previous trend is shown in a broader and long term ascending, descending, or side channel, is expected to continue. If there is a continuation within the rising channel, the trader may expect the price will continue to be bullish in the long term. The same is true for the downward and lateral canals. As could be expected to continue long-term trend when the models continue to be determined.
Continuation patterns usually should be read in conjunction with the cycles of trend. The typical cycle trend will include staging the gap, followed by a few stray explosions and the rupture of exhaustion.