Complete Guide to Continuation Patterns

A short consolidation after a sharp rally (the 'pole'). The flag slopes slightly down before the uptrend continues.

A short consolidation after a sharp decline. The flag slopes slightly up before the downtrend resumes.

Similar to a bull flag but with converging trendlines forming a small triangle after a sharp rally.

Similar to a bear flag but with converging trendlines forming a small triangle after a sharp decline.

A bullish pattern with a flat upper resistance and rising lower trendline. Breakout typically occurs upward.

A bearish pattern with a flat lower support and falling upper trendline. Breakdown typically occurs downward.

Converging trendlines with no directional bias. The breakout direction determines the trade — wait for confirmation.

Price moves between two parallel upward-sloping trendlines. Trade bounces off support and resistance within the channel.

Price moves between two parallel downward-sloping trendlines. Look for a breakout above the upper line for reversal.

A consolidation pattern where price bounces between horizontal support and resistance. Trade the breakout direction.

A bullish continuation pattern resembling a tea cup. The 'cup' forms a U-shape, followed by a small downward drift (the 'handle') before a breakout.