What Happens in Gold Trading after a Continuation Chart Pattern?

A continuation pattern is a market trading signal which shows the current gold trend is taking a break before resuming the current direction of the market gold.

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

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