Continuation patterns are technical analysis chart patterns that indicate a temporary pause or consolidation in an existing trend, followed by the resumption of the trend. These patterns provide traders with valuable information about the market's direction and momentum, helping them to make informed decisions about buying or selling assets.
THE CONTINUATION PATTERNS
Most
Candlestick signals are reversal patterns; however, there are periods of trends
that represent rest. The Japanese insight is, “There
are times to buy, times to sell, and times to rest". Once
a pattern is recognized, it is suggesting a direction for future price
movement. Continuation patterns help with the decision-making process. Whatever
the pattern, a decision has to be made-even if the decision is to do nothing.
For
easier reference, continuation patterns have a chapter of their own. The
continuation patterns included in this chapter are:
·
UPSIDE TASUKI GAP
·
DOWNSIDE TASUKI GAP
·
ON NECK LINE
·
IN NECK LINE
·
THRUSTING
·
RISING THREE METHOD
·
FALLING THREE METHOD
·
SIDE-BY-SIDE WHITE
LINES
·
SEPARATING LINES
·
MAT HOLD
·
THREE-LINE STRIKE