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6 Continuation Pattern Slides

The document outlines various continuation patterns in trading, including bullish and bearish flags, rectangles, cup and handle, triangles, and parallel channels. It explains how these patterns signal potential extensions of existing trends and provides guidance on trading them. Key steps include analyzing the trend, identifying patterns, and waiting for confirmation before executing trades.

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rafiqali1415
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130 views11 pages

6 Continuation Pattern Slides

The document outlines various continuation patterns in trading, including bullish and bearish flags, rectangles, cup and handle, triangles, and parallel channels. It explains how these patterns signal potential extensions of existing trends and provides guidance on trading them. Key steps include analyzing the trend, identifying patterns, and waiting for confirmation before executing trades.

Uploaded by

rafiqali1415
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Continuation Patterns

LECTURE 6
PRESENTATION
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OBJECTIVE
Learn how to find out and trade continuation
patterns and what’s the difference between
continuation and reversal patterns
We will learn

➢ Bullish Flag
➢ Bearish Flag
➢ Bullish rectangle
➢ Bearish rectangle
➢ Cup and handle
➢ Triangles
➢ Parallel channel
BEARISH FLAG

The bearish flag is a candlestick chart pattern that


signals the extension of the downtrend once the
temporary pause is finished. As a continuation
pattern, the bear flag helps sellers to push the price
action further lower.

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BULLISH FLAG
The bull flag pattern is a continuation chart pattern
that facilitates an extension of the uptrend. The
price action consolidates within the two parallel
trend lines in the opposite direction of the uptrend,
before breaking out and continuing the uptrend.

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BEARISH RECTANGLE

A bearish rectangle is formed when the price


consolidates for a while during a downtrend. This
happens because sellers probably need to pause and
catch their breath

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BULLISH RECTANGLE

Bullish rectangles are continuation patterns that occur


when a price pauses temporarily during an uptrend.

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CUP AND HANDLE
Cup with Handle is a bullish continuation pattern that
marks a consolidation period followed by a breakout.
There are two parts to the pattern: the cup and the
handle. The cup forms after an advance and looks like
a bowl or rounding bottom.

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PARALLEL CHANNEL
A parallel channel pattern is a technical chart pattern that is
often used in price analysis to capture a trending move. It is
one of the highly observable patterns and gives multiple
trading opportunities to traders.

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TRIANGLES

A triangle pattern is a continuation patterns that occur


when a price pauses temporarily during a trend.

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Conclusion

How to trade these patterns.

➢ Look at the trend


➢ look for divergence (if there is no divergence then
most likely it’s a continuation)
➢ Look for continuation pattern
➢ Wait for breakout/confirmation with the trend
➢ Execute trade with buy stop sell stop.
Thank You

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