Continuation Commodities Trading Patterns

When these continuation commodities trading chart patterns are formed they confirm that the current trend is going to continue moving in same direction.

These patterns are used by traders to identify half way points of the trend, this is because they form at the half way point of a trend.

There are four types:

• Ascending triangle
• Descending triangle
• Bull flag/pennant
• Bear flag/pennant

Ascending Triangle

The ascending triangle is formed in an up commodity trend and it shows that the upwards direction of the market is going to continue.

It shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once it breaks commodities price will continue moving up-wards.

Overhead resistance temporarily stops the commodities trading market from advancing higher, while the rising trend line beneath the setup signals that buyers are still present. An upside penetration of the upper line is a technical buy commodity signal for a market breaking out from an ascending triangle.

Found within a Commodity Trading upward trend, the ascending triangle forms as a consolidation period within the up commodity trend and indicates upside continuation will follow.

The market formed an ascending triangle during its up commodity trend which led to upside continuation. The buy point is when commodities trading price clears the upper sloping line and the market continues moving upwards.

Descending Triangle

The descending triangle is formed in a down trend and it shows that downwards direction of commodities trading price movement is going to continue.

It shows that there is a support level that the sellers keep pushing each time moving it lower, and once it breaks commodities trading price will continue to move down-ward.

The support temporarily stops the market from declining, while the descending sloping line above the setup signals that the sellers are still present. A down-side penetration of the lower line is a technical sell signal for a market breaking down from a descending triangle, and this demonstrates selling will follow.

Found within a Commodity Trading downward trend, the descending triangle forms as a consolidation period within the down trend & demonstrates downside continuation will follow.

Market formed a descending triangle during its down trend which led to further selling & continuation of the downwards commodities trend. The technical sell signal is when commodities trading price breaks-out the lower horizontal sloping line as selling resumes to push the market lower.

Bull Flag/Pennant

This pattern forms what looks like a rectangle. The rectangle is formed by 2 parallel lines that act as support and resistance for the commodities trading price until the commodities price breaks out. In general, the flag won't be formed perfectly flat but it will be sloping.

The bull flag is found within a Commodity Trading upward commodities trend. In this continuation pattern where the market retraces slightly, it's therefore a slight retracement with narrow commodities trading price action that has a slight downwards tilt. The technical buy point is when commodities trading price penetrates the upper line of the flag. The flag portion has highs & lows which can be connected by small lines which are parallel, giving it what looks like a small channel.

The pennant occurs at halfway point of a bullish upward trend & after a break out a similar move equivalent to the height of the flagpole is expected.

The bull pennant above was just a resting period as the market gathered strength to breakout and move higher. The continuation trading signal was confirmed as a upper line was broken to the upside.

Bear Flag/Pennant

This flag is found in a Commodity Trading downward commodities trend. The bear flag is a continuation pattern where the commodities trading price retraces slightly with a narrow commodities trading price action that has a slight upwards tilt. The technical sell point is when commodities trading price penetrates the lower line of the inverted flag. The pennant portion has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.

The bear pennant above was just a resting period for the market prior to more selling. Continuation signal was confirmed as the lower line was broken to the down-side.