continuation pattern



  • An indicator for technical chart analysis that suggests a price trend will continue after a brief consolidation period. The overall trend will resume once the price breaks out of a well defined range indicated by the pattern being formed. These can be various kinds of triangles, wedges, pennants, flags, as well as some unusual but reliable formations such as a cup & handle. Forex traders should be aware that the break in trading can sometimes occur in the wrong (unexpected) direction. Other indicators must be used to confirm the continuation pattern for reliability.