How to Trade the Continuation Stock Indices Chart Patterns
Continuation Stock Indices Chart Patterns
When these continuation stock indices patterns are formed on the indices charts they confirm that the current Indices trend is going to continue heading in same direction.
These continuation indices patterns are used by stock indices traders to spot halfway points of the indices trend, this is because they form at half-way point of a stock indices trend.
There are four types of continuation stock indices trading chart patterns:
- Ascending triangle continuation stock indices trading chart pattern
- Descending triangle continuation stock indices trading pattern
- Bull flag/pennant continuation stock indices trading chart pattern
- Bear flag/pennant continuation stock indices trading pattern
Ascending Triangle Continuation Chart Pattern
The ascending triangle stock indices chart pattern is formed in an upwards indices trend & it shows that upwards stock indices market direction of the market is going to continue.
Ascending triangle stock indices chart pattern shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once it breaks-out stock indices trading price will continue moving in an upward indices trend.
Overhead resistance temporarily prevents the stock indices trading market from advancing higher, while the rising indices trend line beneath the ascending triangle stock indices chart pattern signals that buyers are still present. An upside penetration of the upper line of the ascending triangle stock indices chart pattern is a technical buy stock indices signal for a market breaking out from an ascending triangle pattern.
Found within a Indices Trading upward trend, the ascending triangle pattern forms as a consolidation period within up trend & indicates upside continuation will follow.
How to Trade Ascending Triangle Stock Indices Chart Pattern - Ascending Triangle Continuation Chart Pattern
The market formed an ascending triangle pattern during its upwards stock indices market indices trend which led to up-side continuation.
The buy stock indices signal point is when stock indices trading price clears the upper sloping line of the ascending triangle stock indices pattern & the stock indices market continues moving upwards.
Descending Triangle Continuation Chart Pattern
The descending triangle stock indices chart pattern is formed in a downwards trend & it shows that the downwards direction of stock indices price movement is going to continue.
Descending triangle stock indices chart pattern shows that there is a support level that the sellers keep pushing each time moving it lower, and once it breaks stock indices trading price will continue moving in a downwards trend direction.
Support temporarily prevents the stock indices trading market from declining, while the descending sloping line above the descending triangle stock indices chart pattern signals that sellers are still present. A downside penetration of the lower line of the descending triangle pattern is a technical sell stock indices signal for a market breaking down from a descending triangle pattern, and this indicates selling will follow.
Found within a Indices Trading downward trend, descending triangle pattern forms as a consolidation period within downward indices trend & indicates downside continuation will follow.
How to Trade Descending Triangle Pattern - Descending Triangle Continuation Pattern
Market formed a descending triangle stock indices pattern during its downwards indices trend which led to further selling and continuation of the downwards indices trend.
The technical sell stock indices signal is when stock indices trading price breaks out the lower horizontal sloping line of the descending triangle stock indices pattern as selling resumes to push the stock indices trading market lower.
Bull Flag Continuation Chart Pattern
Bull flag stock indices chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the stock indices trading price until the stock indices price breaks out. In general, the flag will not be formed perfectly flat but it will be formed sloping.
The bull flag stock indices chart pattern is found within a Indices upwards trend. In this continuation stock indices chart pattern where the stock indices trading market retraces slightly, it's therefore a slight retracement with narrow stock indices price action which has a slight downwards tilt.
The technical buy stock indices signal is when stock indices trading 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 stock indices pattern occurs at halfway point of a bullish upward stock indices market indices trend and after a break out a similar move equal to the height of the flagpole is expected.
How to Trade Bull Flag Pattern - Bull Flag Continuation Pattern
The Bull flag stock indices pattern above was just a resting period as the stock indices trading market gathered strength to break out & move higher.
The Bull flag stock indices chart pattern continuation stock indices signal was confirmed as the upper line of the Bull flag stock indices trading pattern was broken to the upside.
Bear Flag Continuation Chart Pattern
Bear flag stock indices chart pattern flag is found in a Indices downward trend.
The Bear flag stock indices chart pattern is a continuation stock indices chart pattern where the stock indices trading price retraces slightly with a narrow stock indices price action which has a slight upwards tilt.
The technical sell stock indices signal is when stock indices trading 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 stock indices pattern above was just a resting period for the stock indices market prior to more selling.
The Bear flag stock indices chart pattern continuation signal was confirmed as the lower line of the Bear flag stock indices pattern was broken to the down-side.
