Continuation Patterns Explained
Against that backdrop of a question you might expect it a pattern that maintains a trend - if it's not up or down then it must the same.
And that is why such patterns are called continuation patterns. Here are some example types of patterns.
Triangles: this pattern gives prices the chance to consolidate, and then they will tend to move in the same steady direction.
Boxes and rectangles - these are where a price oscillates between two approximate prices, enabling a box or rectangular shape to be drawn 'around' it leading to this name.
Flags - here the move generally may be a little up or down in terms of which way the flag 'points'.
Diamonds - if there is a large swing one way then you will often see some sort of readjustment and this is called a diamond, as that sort of shape can be drawn around it, with the trend then continuing.
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