Home
登入注册
准备好交易了吗?
马上注册

Trend Continuation Patterns

The trend continuation pattern is the price model indicating the tendency will continue after the current situation. While the model forming the price moves in a narrow range. There are several trend continuation patterns. Let's discuss them and their indicators.

The flag formation is a rectangle sloping downward or upward and having a long pole. It forms during a pause after a strong movement.

The flag consists of its body and pole. The pole height indicates a target price after the end of the price formation. Usually, the flag body includes 5 waves and price breaks out of the flag formation on the fifth wave.

The strength of the formation depends on the angle of the formation slope against the main price movement. The more the flag body is directed downwards — the stronger the continuation pattern is. It's better to trade online after a breakout of the price formation.

The pennant formation looks very much like a flag with a triangular body shape. The difference between the pennant and flag formations is that the pennant has a small movement in a narrow range. On the chart, it looks like a small triangle on a long pole (candle).

The pennant also consists of a body and pole. A pole height indicates a target price after the breakout of the pennant formation. That means that after the breakout of formation, the price will move the distance equal to the pole height. The small pennant body also consists of 5 waves.

The other continuation pattern is a triangle formation. It's a dying price movement during a pause in the market. On the chart, it looks like a usual triangle. Depending on its direction to the tendency, it can give a strong or weak continuation pattern.

A symmetrical triangle at any moment of trend is always a strong continuation formation. But if an ascending triangle appears on the bearish trend and a descending triangle appears on the bullish trend there will be a weak continuation pattern that requires confirmation. The ascending triangle on the bullish trend or the descending triangle on the bearish trend indicates a strong continuation pattern. The triangle is formed on the same principles as the mentioned formations and gives the same results:

• A classic triangle has 5 waves, but if it has more waves the movement can be stronger after the breakout of the triangle formation.

• The price breaks out of formation in the first half or three-quarters of the triangle, but if it breaks out in its last quarter the price movement will be short and weak.

• After the formation breakout the price will cover the distance equal to the widest part of the triangle formation.

When the triangle formation appears on the chart it's a good opportunity to trade online after the breakout of this price model.

The tendency continuation patterns are not only good trading cues but also help to estimate a target price. If you know the possible distance of the price movement you can trade during this period with confidence. We would also like to highlight that the formation searching is not a science. Traders should decide for themselves if they see the formation or something like that. The more you work with the technical analysis patterns the easier you can find them and trade successfully. But while you have no experience you should remember the rule: if you see and understand the price chart formation clearly it will surely work.

准备好交易了吗?
马上注册
ExpertOption

公司不向澳大利亚、奥地利、白俄罗斯、比利时、保加利亚、加拿大、克罗地亚、塞浦路斯共和国、捷克共和国、丹麦、爱沙尼亚、芬兰、法国、德国、希腊、匈牙利、冰岛、伊朗、爱尔兰、以色列、意大利、拉脱维亚、列支敦士登、立陶宛、卢森堡、马耳他、缅甸、荷兰、新西兰、朝鲜、挪威、波兰、葡萄牙、波多黎各、罗马尼亚、俄罗斯、新加坡、斯洛伐克、斯洛文尼亚、南苏丹、西班牙、苏丹、瑞典、瑞士、英国、乌克兰、美国、也门。

交易员
聯盟行銷
Partners ExpertOption

付款方法

Payment and Withdrawal methods ExpertOption
本網站所提供的操作可成為高風險等級的操作,其執行亦是有很高風險的。在購買的網站和服務提供的金融工具時,你可能會招致顯著的投資損失,甚至失去所有帳戶裡的資金。於有關本網站上提供的服務內,你將會授予有限的非專屬權利使用這網站包含的 IP ,只可作個人、非商業而不可轉讓用途。
由于EOLabs LLC不受JFSA监管,因此不涉及任何被视为向日本提供金融产品和招揽金融服务的行为,该网站也不面向日本居民。
© 2014–2024 ExpertOption
ExpertOption。保留所有權利。