Complete Guide to Continuation Patterns
Explore flags, pennants, triangles, and rectangles as possible pauses within an existing trend.
10
Patterns covered
5
Bullish patterns
4
Bearish patterns
1
Neutral patterns
Overview
Continuation patterns form during pauses in an existing trend. They represent periods where the market consolidates before resuming in the same direction. These patterns are favored by momentum traders because you are trading with the trend, not against it.
Flags and Pennants
Flags and pennants are the fastest continuation patterns — they typically form over 1-3 weeks (or a few hours intraday). The pole represents a strong directional move, and the flag or pennant is the brief consolidation. The measured move target equals the pole length added to the breakout point.
Triangles and Rectangles
Triangles (ascending, descending, symmetrical) and rectangles take longer to form but offer equally clear breakout levels. Ascending triangles have a bullish bias with flat resistance and rising support. Rectangles are neutral until the breakout direction is confirmed.
Quick Facts
Patterns in This Guide
10 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.
An upward move followed by converging trendlines. A break above the consolidation is a possible continuation trigger.
A downward move followed by converging trendlines. A break below the consolidation is a possible continuation trigger.
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.
A horizontal consolidation after an upward move. A break above resistance is a possible continuation trigger.
A horizontal consolidation after a downward move. A break below support is a possible continuation trigger.
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.
Pattern Trading Checklist
These guides explain pattern structure and trading considerations. For current detection outcomes and their limitations, read the scoring methodology.
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