Trend Continuation Patterns

If you look at the chart with a strongly pronounced trend you can see places where the price has consolidated during its movements forming the same type of figures. These formations are trend continuation patterns which are often used by traders for making decisions. Trend continuation patterns are formed during the pause in the current market trends, and mark rather the movement continuation than its reversal.
By contrast with the model of trend reversal, the figures are often formed at shorter time intervals.

  • Ascending Triangle: Forex Chart Pattern

    The Ascending triangle is a trend continuation pattern typically formed in an uptrend that serves for existing direction confirmation.

  • Descending Triangle: Forex Chart Pattern

    The Descending triangle is represented by a narrowing price range between high and low prices, visually forming a triangle. The main distinctive feature of this type of triangles is that it generally has a descending trendline (resistance) connecting lower and lower highs and a horizontal trendline (support) connecting the low points at approximattely the same level.

  • Symmetrical Triangle: Forex Chart Pattern

    The Symmetric triangle is characterized by a narrowing price range between high and low prices, visually forming a triangle. The main distinctive feature of this type of triangles is that it has a descending trendline (resistance) connecting lower and lower highs and an ascending trendline (support) connecting higher and higher lows. The trendlines’ angles are roughly the same.

  • Rectangle Pattern (Bullish): Forex Chart Pattern

    The rectangle pattern is characterized by two parallel trendlines representing support and resistance levels respectively connecting the most recent lows and highs of the price, holding a certain bunch of price fluctuations within.

  • Rectangle Pattern (Bearish): Forex Chart Pattern

    The rectangle pattern is characterized by two parallel trendlines representing support and resistance levels respectively connecting the most recent lows and highs of the price, holding a certain bunch of price fluctuations within.

  • Flag Chart Pattern: Forex Chart Pattern

    This pattern is represented by two parallel trendlines, a support and resistance, holding the range between high and low prices within, visually forming a parallelogram or a flag and generally directed against the main trend. The pattern is often characterized by a sharp price entering after intensive movement.

  • Pennant Chart Pattern: Forex Chart Pattern

    This pattern is represented by two converging trendlines, support is upward sloping and resistance is downward sloping, visually forming a triangle, which conclude price fluctuations within. The pattern is often characterized by a sharp price entering after intensive movement.

  • Wedge Chart Pattern: Forex Chart Pattern

    The wedge graphical price model is a minor, short-term, trend continuation pattern that shows the previous direction will prevail in the future after its formation. As for the daily chart the pattern is generally formed within a week.