How Do I Read Continuation Chart Patterns?
How to Analyze Continuation Chart Patterns
When gold continuation chart patterns are formed on the xauusd charts they confirm that the current trend direction is going to continue.
Continuation xauusd chart patterns are used by traders to determine the halfway point of the gold trend - this is because these gold continuation chart patterns form at the halfway point of a xauusd trend.
There are four different types of gold continuation chart patterns:
- Ascending triangle Continuation Pattern
- Descending triangle Continuation Pattern
- Bull flag Continuation Chart Pattern
- Bear flag Continuation Chart Pattern
Ascending Triangle Continuation Trading Pattern
The ascending triangle chart pattern is formed in an upwards gold trend - it shows that the upwards gold trend direction is going to continue.
Ascending triangle chart pattern forms as a consolidation period within the upward trend and signals upside gold trend continuation.
Analyze Continuation Patterns?
The xauusd price formed an ascending triangle pattern during its upwards gold trend which led to upside continuation of the upwards trend.
The buy signal is generated when price moves above the upper sloping line of the ascending triangle chart pattern.
Descending Triangle Continuation Trading Pattern
The descending triangle chart pattern is formed in a downwards trend and it shows that the downward gold trend movement is going to continue.
The descending triangle chart pattern forms as a consolidation period within the downwards gold trend and signals downside continuation of the downward gold trend will follow.
Analyze Continuation Patterns?
The xauusd price formed a descending triangle pattern during its downwards gold trend which led to a continuation of the downward xauusd trend.
The sell trading signal is generated when price breaks-out the lower horizontal sloping line of the descending triangle pattern.
Bull Flag Continuation Trading Pattern
Bull flag chart pattern forms what looks like a rectangle - formed by two parallel lines that act as support and resistance for the xauusd price until the xauusd price breaksout. In general, the bull flag chart pattern will not be perfectly flat but it will be sloping.
Bull flag chart pattern occurs at halfway point of an upward gold trend & after a xauusd price break-out a similar move equal to the height of the flagpole is expected.
Interpret Continuation Patterns
The Bull flag pattern shown above was just a resting period as the gold trend which then gathered momentum to break out and move higher.
The Bull flag pattern continuation gold signal was confirmed as upper line of the Bull flag trading pattern was broken to the upside.
Bear Flag Continuation Trading Pattern
Bear flag chart pattern flag is formed in a xauusd trading downwards trading trend.
The Bear flag chart pattern is a gold continuation chart pattern where the price retraces slightly with a narrow price action that has a slight tilt upwards.
Interpret Continuation Patterns
The Bear flag chart pattern shown above was just a resting period for the xauusd price prior to resuming the downwards xauusd trend.
The Bear flag chart pattern gold continuation trading signal was confirmed as the lower line of the Bear flag chart pattern was broken to the down-side.
How Do You Interpret Continuation Chart Patterns
