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Continuation Patterns: How to Identify and Trade Trend-Strengthening Signals
In technical analysis, continuation patterns help traders identify moments when an existing trend is likely to continue after a brief consolidation. Unlike reversal patterns, which signal a trend change, continuation patterns confirm that the prevailing trend remains intact.
This guide covers six powerful continuation patterns that traders use to spot trend-strengthening opportunities:
- Rising Three Methods – A long green candle, three small red candles, then another strong green candle.
- Falling Three Methods – A long red candle, three small green candles, then another strong red candle.
- Bullish Flag – A consolidation phase forming a downward rectangle after an uptrend.
- Bearish Flag – A consolidation phase forming an upward rectangle after a downtrend.
- Bullish Pennant – A small symmetrical triangle after a strong uptrend, leading to further upside.
- Bearish Pennant – A small symmetrical triangle after a strong downtrend, leading to further downside.
By the end of this article, you’ll understand how to spot, confirm, and trade continuation patterns effectively.
1. Rising Three Methods: Bullish Continuation Pattern
What is the Rising Three Methods Pattern?
The Rising Three Methods is a five-candle bullish continuation pattern that appears in an uptrend.
blog.revold.us/continuation-patterns-how-to-identify-and-...
Continuation Patterns: How to Identify and Trade Trend-Strengthening Signals
In technical analysis, continuation patterns help traders identify moments when an existing trend is likely to continue after a brief consolidation. Unlike reversal patterns, which signal a trend change, continuation patterns confirm that the prevailing trend remains intact.
This guide covers six powerful continuation patterns that traders use to spot trend-strengthening opportunities:
- Rising Three Methods – A long green candle, three small red candles, then another strong green candle.
- Falling Three Methods – A long red candle, three small green candles, then another strong red candle.
- Bullish Flag – A consolidation phase forming a downward rectangle after an uptrend.
- Bearish Flag – A consolidation phase forming an upward rectangle after a downtrend.
- Bullish Pennant – A small symmetrical triangle after a strong uptrend, leading to further upside.
- Bearish Pennant – A small symmetrical triangle after a strong downtrend, leading to further downside.
By the end of this article, you’ll understand how to spot, confirm, and trade continuation patterns effectively.
1. Rising Three Methods: Bullish Continuation Pattern
What is the Rising Three Methods Pattern?
The Rising Three Methods is a five-candle bullish continuation pattern that appears in an uptrend.
blog.revold.us/continuation-patterns-how-to-identify-and-...