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