{"id":9021,"date":"2021-03-02T15:23:31","date_gmt":"2021-03-02T12:23:31","guid":{"rendered":"http:\/\/thetraderinyou.com\/test\/?p=9021"},"modified":"2022-05-01T15:41:20","modified_gmt":"2022-05-01T12:41:20","slug":"trend-continuation-chart-patterns","status":"publish","type":"post","link":"https:\/\/thetraderinyou.com\/test\/trend-continuation-chart-patterns\/","title":{"rendered":"7 Forex Trend Continuation Chart Patterns"},"content":{"rendered":"\n

What do we know about price? It is either moving up or down or sideways.  Charts have a fancy way of capturing the motion signaling a continuation or reversal.<\/p>\n\n\n\n

Continuation chart patterns<\/a> are at the heart of trading trends; they capture a price consolidation on its way to the trend’s direction.<\/p>\n\n\n\n

With only trendlines, naked chart traders jump into the trend when price breaks out.<\/p>\n\n\n\n

We’ll consider 7 of the best trend continuation chart patterns in this article.<\/p>\n\n\n\n

Please read our article on the reversal chart patterns to complete the equation to help you get into reversals when they’re still hot<\/a>.<\/p>\n\n\n\n

<\/div>\n\n\n\n\n\n
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Three things to note about trend continuation chart patterns.<\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n
  1. They form during a trend (uptrend or downtrend)<\/li>
  2. Price consolidates and moves sideways to form these patterns<\/li>
  3. When price breaks out of the pattern, it always continues in the direction of the original trend.<\/li><\/ol>\n\n\n\n
    <\/div>\n\n\n\n

    Bullish Continuation Chart Patterns<\/strong><\/h2>\n\n\n\n
    <\/div>\n\n\n\n

    Bullish continuation chart patterns appear in an uptrend.<\/p>\n\n\n\n

    With the help of trendlines, they are easy to spot on any chart.<\/p>\n\n\n\n

    Here are the major bullish continuation patterns.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    Ascending triangle<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"Ascending<\/a><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    The ascending triangle pattern is a result of price consolidating in an uptrend.<\/p>\n\n\n\n

    Price rises to establish a new high, it retraces then bounces up again, at the level of the first high it will drop, but it will print a higher low, this will continue until it breaks out.<\/p>\n\n\n\n

    If you draw trendlines capturing the tops and another tracing the lows, you will see a triangle pattern.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to trade the Ascending Triangle chart pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Notice when the candlesticks start to shrink into the triangle.<\/p>\n\n\n\n

    Place a pending buy order a few pips above the upper trendline.<\/p>\n\n\n\n

    Place the stop loss anywhere below the lower trendline.<\/p>\n\n\n\n

    Get out or set the take profit limit at the next likely resistance level.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    Bullish Pennant<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"Bullish<\/a>
    Bullish Pennant Chart Pattern<\/figcaption><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    Quite often, price shoots up without notice. When it does, a bullish pennant is what to look for to determine if it will continue upwards.<\/p>\n\n\n\n

    Price shoots up to levels higher than the candles on the left, briefly consolidates printing higher lows and low highs, forming a triangle when connected with trendlines.<\/p>\n\n\n\n

    After the brief consolidation, price will rapidly break out of this triangle upwards.<\/p>\n\n\n\n

    The bullish pennant is also known as the triangular pattern, but don’t mistake it for the much larger symmetrical triangle pattern.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to trade The bullish pennant continuation pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Only look for the bullish pennant after a rapid price hike.<\/p>\n\n\n\n

    Place a pending buy order a few pips above the upper trendline.<\/p>\n\n\n\n

    Place the stop loss anywhere below the lower trendline.<\/p>\n\n\n\n

    Exit the trade at the next likely resistance level.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    Bullish Flag<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"Bullish<\/a><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    Like the bullish pennant pattern, the bullish flag forms after a sudden price jump.<\/p>\n\n\n\n

    Price pauses printing lower lows and lower highs.<\/p>\n\n\n\n

    When you draw a trendline connecting the lows and another connecting the highs, you will see what looks like a flag.<\/p>\n\n\n\n

    Price often shoots up above the upper trendline continuing with the bullish run.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to trade the bullish flag chart pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Like the bullish pennant, Only look for the bullish flat after a rapid price hike.<\/p>\n\n\n\n

    Place a pending buy order a few pips above the upper trendline.<\/p>\n\n\n\n

    Place the stop loss anywhere below the lower trendline.<\/p>\n\n\n\n

    Exit the trade at the next likely resistance level or based on your RR.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    The Bullish Rectangle pattern<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"Bullish<\/a><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    The bullish rectangle pattern forms when an uptrend stalls creating new support and resistance levels.<\/p>\n\n\n\n

    The price will go sideways, printing highs at the resistance levels and lows at the support level.<\/p>\n\n\n\n

    Draw a trendline joining the highs and another joining the lows to see how the highs and lows are almost parallel.<\/p>\n\n\n\n

    The bullish rectangle pattern’s beauty is that both range traders and breakout traders will find it tremendously useful.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to trade the bullish rectangle chart pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Entry: For a range trader, sell at the resistance level, buy at the support level.<\/p>\n\n\n\n

    For the positional and breakout trader, set a pending buy order above the resistance level.<\/p>\n\n\n\n

    Place a pending buy order a few pips above the resistance level<\/p>\n\n\n\n

    Place the stop loss anywhere below the support level for the buys and above the resistance level for sell orders.<\/p>\n\n\n\n

    Exit. The range trader exits when price hits the support and resistance levels.<\/p>\n\n\n\n

    Positional and breakout traders can exit at the next resistance level or based on your RR.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    The Bearish Continuation Chart Patterns<\/strong><\/h2>\n\n\n\n
    <\/div>\n\n\n\n

    When the market is in a downtrend, look through these bearish continuation patterns for possible entries.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    Descending Triangle<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"Descending<\/a>
    Descending triangle<\/figcaption><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    The descending triangle pattern is a bearish continuation chart pattern that forms in a downtrend.<\/p>\n\n\n\n

    The descending triangle is visible when the upper trendline that joins the highs intersects with the trendline that joins the lows.<\/p>\n\n\n\n

    The trend continuation is confirmed once the price breaks out below the lower trendline.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to trade the descending Triangle chart pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Notice when the candlesticks start to shrink into the triangle.<\/p>\n\n\n\n

    Place a pending buy order a few pips below the lower trendline.<\/p>\n\n\n\n

    Place the stop loss anywhere above the upper trendline.<\/p>\n\n\n\n

    Get out or set the take profit limit at the next likely support level.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    Bearish Pennant<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"Bearish<\/a>
    Bearish pennant chart pattern<\/figcaption><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    The bearish pennant prints when the price falls sharply.<\/p>\n\n\n\n

    Price momentarily consolidates, printing lower lows and lower highs before breaking out to the downside.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to trade The bearish pennant continuation pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Only look for the bearish pennant after a rapid price drop.<\/p>\n\n\n\n

    Place a pending buy order a few pips below the lower trendline.<\/p>\n\n\n\n

    Place the stop loss anywhere above the upper trendline.<\/p>\n\n\n\n

    A safe place to exit the trade is at the next likely support level or based on your RR.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    The Bearish Rectangle Chart Pattern<\/strong><\/h3>\n\n\n\n
    <\/div>\n\n\n\n

    The bearish rectangle chart pattern is a graphical representation of the sideways movement of price during a downtrend.<\/p>\n\n\n\n

    Price takes a break forming a support and resistance level from where price ping pongs before the bears resume the downtrend.<\/p>\n\n\n\n

    Like the bullish rectangle, breakout, positional, and range, traders can find the bearish rectangle chart pattern useful.<\/p>\n\n\n\n

    <\/div>\n\n\n\n
    \"Bearish<\/a>
    Bearish rectangle pattern<\/figcaption><\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    How to trade the bearish rectangle chart pattern<\/strong><\/h4>\n\n\n\n
    <\/div>\n\n\n\n

    Entry: For a range trader, sell at the support level, buy at the resistance level.<\/p>\n\n\n\n

    For the positional and breakout trader, set a pending sell order below the support level.<\/p>\n\n\n\n

    Place the stop loss anywhere below the support level for the buys and above the resistance level for the sells.<\/p>\n\n\n\n

    Exit. The range trader exits when the price hits the support and resistance levels.<\/p>\n\n\n\n

    Positional and breakout traders can exit at the next support level or based on your RR.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    Last thoughts on forex trend continuation chart patterns<\/strong><\/h2>\n\n\n\n
    <\/div>\n\n\n\n

    Continuation chart patterns are good indicators naked chart traders use to get in and get out of trades.<\/p>\n\n\n\n

    This article has hopefully helped you to know what to look out for before jumping into a trend.<\/p>\n\n\n\n

    In a nutshell, to trade continuation chart patterns<\/p>\n\n\n\n

    1. Identify the areas a trend consolidates at.<\/li>
    2. Draw trendlines at the highs and lows.<\/li>
    3. Set pending orders in breakout areas \u2013 below the trendline for sells and above the upper trendline for sales.<\/li>
    4. Place your stop loss a few pips below or above your trendlines.<\/li>
    5. Exit the trade at the next support or resistance levels.<\/li>
    6. Trade with sound risk<\/a> management.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

      A trend is only your friend if you know when to get in. Jump into an uptrend or downtrend with the forex trend continuation chart patterns in this article.<\/p>\n","protected":false},"author":2,"featured_media":9033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[291,293,305,292],"tags":[362,361],"fx-broker":[],"trading-prop-firm":[],"table_tags":[],"acf":[],"nelio_content":{"isAutoShareEnabled":true,"autoShareEndMode":"never","automationSources":{"useCustomSentences":false,"customSentences":[]},"followers":[1,2],"suggestedReferences":[],"efiUrl":"","efiAlt":"","highlights":[]},"_links":{"self":[{"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/posts\/9021"}],"collection":[{"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/comments?post=9021"}],"version-history":[{"count":10,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/posts\/9021\/revisions"}],"predecessor-version":[{"id":9537,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/posts\/9021\/revisions\/9537"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/media\/9033"}],"wp:attachment":[{"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/media?parent=9021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/categories?post=9021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/tags?post=9021"},{"taxonomy":"fx-broker","embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/fx-broker?post=9021"},{"taxonomy":"trading-prop-firm","embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/trading-prop-firm?post=9021"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/thetraderinyou.com\/test\/wp-json\/wp\/v2\/table_tags?post=9021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}