How Do I Trade Continuation Chart Pattern?
Continuation Chart Patterns
When these continuation chart patterns are formed on the gold charts they confirm that the current Gold trend is going to continue heading in the same direction.
These continuation gold patterns are used by traders to identify halfway points of the gold trend, this is because they form at the halfway point of a xauusd trend.
There are four types of continuation trading patterns:
- Ascending triangle continuation chart pattern
- Descending triangle continuation trading pattern
- Bull flag/pennant continuation chart pattern
- Bear flag/pennant continuation trading pattern
Ascending Triangle Continuation Chart Pattern
The ascending triangle pattern is formed in an upward gold trend & it shows that upwards gold market direction of the market is going to continue.
Ascending triangle pattern shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once it breaks-out xauusd price will continue moving in an upward xauusd trend.
The overhead resistance temporarily prevents the xauusd market from advancing higher, while the rising gold trend line beneath the ascending triangle chart pattern signals that buyers are still present. An upside penetration of the upper line of the ascending triangle chart pattern is a technical buy trading signal for a market breaking out from an ascending triangle pattern.
Found within a Gold Trading upwards trend, ascending triangle pattern forms as a consolidation period within up gold trend and indicates upside continuation will follow.
How to Trade Ascending Triangle Pattern - Ascending Triangle Continuation Chart Pattern
The market formed an ascending triangle pattern during its upwards xauusd market trend which led to up-side continuation.
The buy signal point is when price clears the upper sloping line of the ascending triangle chart pattern & the xauusd market continues heading upward.
Descending Triangle Continuation Chart Pattern
The descending triangle chart pattern is formed in a downward trend & it shows that downwards direction of xauusd price movement is going to continue.
Descending triangle pattern shows that there is a support level that the sellers keep pushing each time moving it lower, & once it breaks-out xauusd price will continue moving in a downwards trend direction.
Support temporarily prevents the xauusd market from declining, while the descending sloping line above the descending triangle chart pattern signals that sellers are still present. A downside penetration of the lower line of the descending triangle pattern is a technical sell signal for a market breaking down from a descending triangle pattern, & this indicates selling will follow.
Found within a Gold Trading downwards trend, descending triangle pattern forms as a consolidation period within downwards gold trend and indicates downside continuation will follow.
How to Trade Descending Triangle Chart Pattern - Descending Triangle Continuation Chart Pattern
The market formed a descending triangle pattern during its downward gold trend which led to further selling & continuation of the downwards xauusd trend.
The technical sell signal is when price breaks out the lower horizontal sloping line of the descending triangle chart pattern as selling resumes to push the xauusd market lower.
Bull Flag Continuation Chart Pattern
Bull flag chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support & resistance for xauusd price until the xauusd price breaks out. In general, the flag will not be formed perfectly flat but it will be sloping.
The bull flag pattern is found within a Gold upward trend. In this continuation chart pattern where the xauusd market retraces slightly, it is therefore a slight retracement with narrow xauusd price action which has a slight downwards tilt.
The technical buy signal is when price penetrates the upper line of the Bull flag pattern. The flag portion has highs & lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
Bull flag chart pattern occurs at halfway point of a bullish upward gold market trend & after a break out a similar move equal to the height of the flagpole is expected.
How to Trade Bull Flag Pattern - Bull Flag Continuation Chart Pattern
The Bull flag pattern above was just a resting period as the xauusd market gathered strength to break-out & move higher.
The Bull flag pattern continuation gold signal was confirmed as upper line of the Bull flag pattern was broken to the upside.
Bear Flag Continuation Chart Pattern
Bear flag pattern flag is found in a Gold Trading downward trend.
The Bear flag chart pattern is a continuation chart pattern where the price retraces slightly with a narrow price action which has a slight upward tilt.
The technical sell signal is when price penetrates the lower line of the inverted 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.
How to Trade Bear Flag Pattern - Bear Flag Continuation Pattern
The Bear flag pattern above was just a resting period for the xauusd market prior to more selling.
The Bear flag pattern continuation trading signal was confirmed as lower line of the Bear flag trading pattern was broken to the downside.
