Continuation Patterns

These are the other type of patterns that you will be able to identify on the charts. They are usually shorter term than the reversal patterns, and the main difference is that they suggest trend consolidations and continuations rather than reversing the trend. Whenever a trend pauses, it must finally resolve into a reversal or a continuation, and as mentioned above most of the time trends continue rather than change, as first noted by Dow. So you can expect to see a few of these.

The patterns given in the section are normally considered continuation patterns, and this module is divided into the two sections, reversal patterns and continuation patterns. As you read through, you will find that sometimes these continuation patterns can herald reversals, and there are always exceptions to the general tendencies. Again, trading is not an exact science, but a process of staking the odds in your favor so you come out on top. With that said, we’ll start by looking at triangles.

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