Continuation Patterns XAUUSD Trading Patterns
When these continuation chart patterns are formed on the trading chart they confirm that the present Gold price trend is going to continue moving in the same direction.
These continuation chart patterns are used by XAUUSD traders to identify halfway points of the trend: this is because these continuation patterns form at the halfway point of a market trend.
There are 4 types of continuation chart patterns:
- Ascending triangle
- Descending triangle
- Bull flag/pennant
- Bear flag/pennant
Rising Triangle Continuation Chart Pattern
The ascending triangle chart setup is formed in an up trend & it shows that the upwards direction of the market price is going to continue in. It shows that there's a resistance level that the buyers(bulls) keep pushing each time moving it higher, & once it breaks, the price will continue heading and going upwards.
The overhead resistance temporarily halts the XAUUSD Gold market from moving higher, while the rising trend line beneath the setup signals that buyers(bulls) are still present. An upside penetration of the upper trend-line is a trading buy trade signal for a market breaking-out from an ascending triangle. This continuation pattern setup is found within a XAUUSD prices upward trend, the ascending triangle forms/develops as a consolidation period within the uptrend and reflects upside continuation will follow.
Rising Triangle Continuation Pattern
The market formed developed an ascending triangle during its upwards trend which led to an upside continuation. The buy point is when the price clears the upper sloping line and the market continues heading upward.
Falling Triangle Setup
The descending triangle pattern is formed in a downtrend & it shows that the downwards direction of price movement is going to continue. It shows that there's a support level that the sellers(bears) keep pushing each time moving it lower, & once this support area breaks, the price will continue heading downward.
The support level temporarily halts the market from declining/falling, while the descending sloping line above the pattern setup signals that sellers(bears) are still present. A down side penetration of the lower line is a technical sell signal for a market breaking downwards from a descending triangle setup an indication that selling will follow.
Found within a XAUUSD price downtrend, the descending triangle forms/develops as a consolidation period within the downtrend & reflects downside continuation will follow.
Falling Triangle Continuation Chart Pattern
The market developed formed a descending triangle during its downtrend which led to further selling and a continuation of the downward trend. The technical sell signal is when the price breaks the lower horizontal sloping line as the selling resumes to push the market lower.
Bull Flag/Pennant
This continuation pattern setup forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support & resistance for the price until the price breaks out. In general, the flag will not be perfectly flat but it will be sloping.
The bull flag is found within a Gold price upwards trend. In this continuation chart pattern the price retraces slightly and this pattern can be considered as a slight retracement with narrow price action that has got a slight downwards tilt. The technical buy point is when price penetrates the upper line of flag. The flag portion has highs and lows which can be joined by small lines which are parallel, giving it the look of a small channel.
The pennant setup occurs at half-way point of a bullish upwards trend & after a break out a similar move equivalent to the height of the flag-pole is expected.
Bull Flag Pennant Continuation Chart Setup
The bull pennant continuation setup above was just a resting period as the market gathered strength to break out and move higher. The continuation trading signal was completed when the upper line was broken to the up-side.
Bear Flag/Pennant Pattern
This bear flag is found in a XAUUSD price downward trend. The bear flag is a continuation chart pattern where the price retraces slightly with a narrow price action that has got a slight upwards tilt. The technical sell point is when the price penetrates the lower line of the inverted flag. The pennant portion has highs & lows which can be connected by small lines which are parallel, giving it the look of a small channel.
Bear Flag Pennant Setup
The bear flag pennant chart pattern setup above was just a resting phase for the market prior to more selling. The continuation trading signal was completed when the lower line was broken to the down-side.
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