What Happens after a Continuation Chart Pattern? - What Happens after a Bullish and a Bearish Continuation Chart Pattern?

A continuation pattern is a market trading signal that shows the current market trend is taking a pause before resuming the current direction of the market currency pair.

If the trend is upwards a continuation chart pattern signals that the market is taking a break before resuming the current upwards trend. The continuation pattern in a upward trend is known as a rising wedge which signals that the price is consolidation but keeps moving higher & higher forming a chart pattern that resembles a rising wedge. Traders should wait for a confirmation of this pattern before opening a trade based on this bullish continuation pattern. Once there is a forex price breakout to the upside then the continuation pattern is confirmed & prices will then continue to move in direction of the current upwards forex market trend.

If the trend is downwards a continuation chart pattern signals that the market is taking a break before resuming the current downwards trend. The continuation pattern in a downwards trend is known as a falling wedge which signals that the price is consolidation but keeps moving lower & lower forming a pattern that looks like a falling wedge. Traders should wait for a confirmation of this chart pattern before opening a trade based on this bearish continuation chart pattern. Once there is a forex price breakout to the downside then the continuation pattern is confirmed & prices will then continue to move in direction of the current downwards forex market trend.