Continuation Metal Chart Patterns

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

These patterns are used by metal traders to spot halfway points of the trend, this is because they form at 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 metals trend and it shows that upward 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 metals price will continue heading upward.

The overhead resistance temporarily prevents the metal market from advancing higher, while the rising metals trend line beneath the pattern signals that buyers are still present. An upside penetration of the upper line is a technical buy metals signal for a market breaking out from an ascending triangle.

Found within a Metals upward metals trend, the ascending triangle forms as a consolidation period within the up metals trend & indicates upside continuation will follow.

The market formed an ascending triangle during its up metals trend which led to upside continuation. Buy point is when metals price clears the upper sloping line & the metal market continues heading upward.

Descending Triangle

The descending triangle is formed in a down metals trend and it shows that downward direction of metals 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 metals price will continue moving downward.

Support temporarily prevents the metal market from declining, while the descending sloping line above the pattern signals that sellers are still present. A down-side penetration of the lower line is a technical sell metal trading signal for a market breaking down from a descending triangle, & this indicates selling will follow.

Found within a Metal downward metals trend, the descending triangle forms as a consolidation period within the down metals trend & indicates downside continuation will follow.

The market formed a descending triangle during its down metals trend which led to further selling and continuation of the downward metal trend. The technical sell metals signal is when metals price breaks-out the lower horizontal sloping line as selling resumes to push the metal market lower.

Bull Flag/Pennant

This metals trading pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for metals price until the metals price breaks out. In general, the flag will not be formed perfectly flat but this pattern will be formed sloping.

The bull flag is found within a Metals upward metal trend. In this continuation pattern where the metal market retraces slightly, it is therefore a slight retracement with narrow metals price action which has a slight downward tilt. The technical buy point is when metals price penetrates the upper line of the flag. The flag portion has highs and lows which can be connected by small lines which are parallel, and it looks like a small channel.

The pennant occurs at halfway point of a bullish upwards metals trend and after a break out a similar move equal to the height of the flagpole is expected.

The bull pennant above was just a resting period as the metal market gathered strength to break out and move higher. The continuation signal was confirmed as a upper line was broken to the up-side.

Bear Flag/Pennant

This flag is found in a Metals downward metal trend. The bear flag is a continuation pattern where the metals price retraces slightly with a narrow metals price action which has a slight upward tilt. The technical sell point is when metals 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, and it looks like a small channel.

The bear pennant above was just a resting period for the metal market prior to more selling. Continuation signal was completed as lower line was broken to the downside.