Continuation Oil Trading Patterns

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

These patterns are used by crude oil traders to spot half way 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 oil trend and it shows that upwards 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 crude oil price will continue heading upwards.

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

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

The market formed an ascending triangle during its up oil trend which led to upside continuation. The buy point is when crude oil price clears the upper sloping line and the crude oil market continues heading upward.

Descending Triangle

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

The support temporarily prevents the crude oil 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 crude oil signal for a market breaking out downward from a descending triangle, and this indicates selling will follow.

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

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

Bull Flag/Pennant

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

The bull flag is found within a Oil Trading upward oil trend. In this continuation pattern where the crude oil market retraces slightly, it is therefore a slight retracement with narrow crude oil price action which has a slight downwards tilt. The technical buy point is when crude oil 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 oil trend and after a break-out a similar move equivalent to the height of the flagpole is expected.

The bull pennant above was just a resting period as the crude oil market gathered strength to break out and move higher. The continuation trading signal was confirmed as a upper line was broken to the upside.

Bear Flag/Pennant

This flag is found in a Oil Trading downward oil trend. The bear flag is a continuation pattern where the crude oil price retraces slightly with a narrow crude oil price action which has a slight upward tilt. The technical sell point is when crude oil 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 crude oil market prior to more selling. Continuation signal was confirmed as the lower line was broken to the downside.