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Continuation Pattern |
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Continuation Pattern A technical analysis pattern that suggests a trend is exhibiting a temporary diversion in behavior and will eventually continue on its existing trend. The symmetrical triangle charts displayed below are both exhibiting a continuation pattern. Notice how the chart extends above (below) its existing pattern.  Notes: Continuation patterns tend to be the most accurate when the trend has existed for around one to three months.The most common types of continuation patterns are triangles, flags and wedges. |
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Remember, bull markets are global affairs and, at last glance, the DJ World Stock Market Index was in a highly bullish mode, having held above key support last August and, in the interim, has traced out a continuation pattern of ascending tops and bottoms. |
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Continuation Pattern
