Chart Patterns
Continuation Pattern
A pause in price that precedes the continuation of the existing trend.
Full Definition
Continuation patterns are chart formations that indicate a temporary pause in the prevailing trend before price continues in the same direction. Common patterns include flags, pennants, wedges, and rectangles. These patterns typically form during consolidation periods.
Example
In an uptrend, price forms a bull flag - a small pullback with parallel boundaries. When price breaks above the flag, the uptrend continues.
Related Terms
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