Continuation Trading Setups

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

These patterns are used by traders to spot half way points of the trend, this is because they form at 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 trend and it shows that the upward 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, & once it breaks price will continue heading upwards.

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

Found within a upward trend, the ascending triangle forms as a consolidation period within the up trend and shows upside continuation will follow.

The market formed an ascending triangle during its up trend which led to upside continuation. Buy point is when xagusd trading price clears the upper sloping line & the trading market continues heading upward.

Descending Triangle

The descending triangle is formed in a down trend and it portrays that the downward direction of price movement is going to continue.

It shows that there is a support level that the sellers keep pushing each time moving it lower, & once it breaks price will continue to move downwards.

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

Found within a downward trend, the descending triangle forms as a consolidation period within the down trend and shows downside continuation will follow.

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

Bull Flag/Pennant

This trading pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for price until the 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 upward trend. In this continuation pattern where the market retraces slightly, it is therefore a slight retracement with narrow price action which has a slight downwards tilt. The technical buy point is when xagusd trading price penetrates the upper line of the flag. The flag portion has highs and lows which can be connected by small lines that are parallel, giving it what looks like a small channel.

The pennant occurs at halfway point of a bullish upward trend and after a breakout a similar move equal to the height of the flag pole is expected.

The bull pennant above was just a resting period as the trading market gathered strength to breakout 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 downward trend. The bear flag is a continuation pattern where the trading price retraces slightly with a narrow price action which has a slight upward tilt. The technical sell point is when xagusd 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 trading market prior to more selling. The continuation signal was completed as lower line was broken to the downside.