Continuation Oil Trading Patterns

When these continuation crude oil trading chart patterns are formed they confirm that the current oil trend is going to continue moving in the same direction.

These patterns are used by crude oil traders to identify halfway points of the trend, this is because they form at the halfway 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 oil trend & it shows that the upward direction of the oil 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 crude crude oil trading price will continue heading upwards.

The overhead resistance temporarily prevents the crude oil market from advancing higher, while the rising oil trend line beneath the pattern signals that buyers are still present. An upside penetration of the upper line is a technical buy oil signal for a market breaking out from an ascending triangle.

Found within a Oil Trading upwards oil trend, the ascending triangle forms as a consolidation period within the up oil trend & indicates upside continuation will follow.

The market formed an ascending triangle during its up oil trend which led to upside continuation. buy point is when crude crude oil trading price clears the upper sloping line & the oil market continues moving upwards.

Descending Triangle

The descending triangle is formed in a down oil trend & it shows that the downward direction of crude oil 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 crude crude oil price will continue to move downwards.

The support temporarily prevents the oil market from declining, while the descending sloping line above the pattern signals that sellers are still present. A downside penetration of the lower line is a technical sell oil signal for a market breaking down from a descending triangle, & it indicates selling will follow.

Found within a Oil Trading downwards oil trend, the descending triangle forms as a consolidation period within the down oil trend & indicates downside continuation will follow.

The market formed a descending triangle during its down oil trend which led to further selling & continuation of the downward crude oil trend. The technical sell oil signal is when crude crude oil trading price breaks-out the lower horizontal sloping line as selling resumes to push the oil market lower.

Bull Flag/Pennant

This oil pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support & resistance for crude crude oil trading price until the crude crude oil price breaks out. In general, the flag will not be formed perfectly flat but it will be formed sloping.

The bull flag is found within a Oil Trading upwards crude oil trend. In this continuation pattern where the oil market retraces slightly, it is therefore a slight retracement with narrow crude crude oil trading price action that has a slight downwards tilt. The technical buy point is when crude crude oil 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 upwards oil trend & after a break out a similar move equal to the height of the flagpole is expected.

The bull pennant above was just a resting period as the oil market gathered strength to break out and move higher. The continuation signal was confirmed as the upper line was broken to the upside.

Bear Flag/Pennant

This flag is found in a Oil Trading downwards crude oil trend. The bear flag is a continuation pattern where the crude crude oil trading price retraces slightly with a narrow crude crude oil trading price action that has a slight upward tilt. The technical sell point is when crude crude oil 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 oil market prior to more selling. continuation signal was confirmed as the lower line was broken to the downside.