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