Technical Analysis of Continuation Chart Patterns
Continuation Trading Patterns
When these continuation patterns are formed on the gold charts they confirm that the current xauusd trend is going to continue moving in the same direction.
These continuation xauusd patterns are used by traders to spot halfway points of the xauusd trend, this is because they form at the halfway point of a gold trend.
There are four types of continuation chart 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 Trading Pattern
The ascending triangle pattern is formed in an upwards xauusd trend & it shows that the upwards xauusd market direction of the market is going to continue.
Ascending triangle chart pattern shows that there is a resistance level that the buyers keep pushing each time moving it higher, & once it breaks-out gold price will continue moving in an upward gold trend.
The overhead resistance temporarily prevents the xauusd market from advancing higher, while the rising xauusd 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 XAUUSD upward trend, the ascending triangle pattern forms as a consolidation period within the up trend & indicates upside continuation will follow.
How to Trade Ascending Triangle Chart Pattern - Ascending Triangle Continuation Chart Pattern
The market formed an ascending triangle pattern during its upward xauusd market xauusd trend which led to up-side continuation.
The buy signal point is when price clears the upper sloping line of the ascending triangle pattern and the xauusd market continues moving upwards.
Descending Triangle Continuation Trading Pattern
The descending triangle pattern is formed in a downward trend & it shows that the downwards direction of gold 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, and once it breaks out gold 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 XAUUSD downward trend, the descending triangle pattern forms as a consolidation period within the downwards xauusd trend & indicates downside continuation will follow.
How to Trade Descending Triangle Pattern - Descending Triangle Continuation Pattern
The market formed a descending triangle pattern during its downward xauusd trend which led to further selling & continuation of the downwards gold trend.
The technical sell signal is when price breaks lower horizontal sloping line of the descending triangle pattern as selling resumes to push the xauusd market lower.
Bull Flag Continuation Trading Pattern
Bull flag chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the gold price until the gold 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 XAUUSD upward trend. In this continuation chart pattern where the xauusd market retraces slightly, it is therefore a slight retracement with narrow gold 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 and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
Bull flag pattern occurs at halfway point of a bullish upwards xauusd market xauusd trend & after a break-out a similar move equivalent to the height of the flagpole is expected.
How to Trade Bull Flag Pattern - Bull Flag Continuation Pattern
The Bull flag pattern above was just a resting period as the xauusd market gathered strength to break-out and move higher.
The Bull flag pattern continuation xauusd signal was completed as the upper line of the Bull flag pattern was broken to the upside.
Bear Flag Continuation Trading Pattern
Bear flag pattern flag is found in a Gold downward trend.
The Bear flag pattern is a continuation pattern where the price retraces slightly with a narrow price action which has a slight upwards tilt.
The technical sell signal is when price penetrates the lower line of the inverted flag. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
How to Trade Bear Flag Chart Pattern - Bear Flag Continuation Pattern
The Bear flag pattern above was just a resting period for xauusd market prior to more selling.
The Bear flag pattern continuation signal was completed as lower line of the Bear flag pattern was broken to the downside.
