![]() Continuation patterns are a great indicator to help a trader make their trading decision, but they should not be used alone. However, continuation patterns are not fool proof, and should therefore be used in conjunction with other indicators. In addition, some continuation patterns, such as wedges, can show reversals of a trend, while others, such as triangles, are bilateral chart patterns that show that an asset’s price can break out in either direction.Ĭontinuation patterns can be used over different time periods too and are therefore helpful for day traders or long-term traders, which are more common in the crypto space. They can be both bearish and bullish, with the former showing a continuation of a downtrend and the latter showing a continuation of an uptrend. Thus, continuation patterns are understood as a pause in an asset’s trend a period of consolidation, or price acceptance, before the trend continues its journey. One group of patterns that is used time and time again for both traditional securities trading and crypto trading are continuation chart patterns.Ĭontinuation patterns in technical analysis are, as the name suggests, chart patterns that show that an asset’s price trend will continue once the pattern has finished. The patterns found in these charts can indicate whether an asset will turn bearish or bullish and to what extent, thereby helping a trader decide what action to take. ![]() Although there are many tools that can be used to help this process, all good traders will look for patterns in the price charts. When looking to make the right trading decision, a certain amount of technical analysis is required. ![]() What Are Continuation Patterns: Geometric Shapes to Trading Success
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