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CONTINUATION PATTERNS What are Continuation Chart Patterns? Forming a major component of technical analysis, continuation chart patterns assist invest

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Realjosh254

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CONTINUATION PATTERNS
What are Continuation Chart Patterns?
Forming a major component of technical analysis, continuation chart patterns assist investors in forecasting the future price movement of an asset. Whether you plan to invest in Bitcoin or Ethereum, continuation chart patterns create powerful buy and sell signals that can help you better time your investment decisions.

Continuation Chart Patterns Overview
In short, continuation chart patterns indicate that the prevailing price trend of a security is likely to continue following the pattern’s completion. For example, if an asset is currently in the middle of a price downtrend, the formation of a continuation trading pattern would signal the likely continuation of the current downtrend following the pattern’s completion.

Continuation Chart Patterns That We’ll Cover:
Bullish Rectangle
Bearish Rectangle
Ascending Triangle
Descending Triangle
Bullish Flag
Bearish Flag

1.Bullish Rectangle
The Bullish Rectangle is a continuation pattern depicted by temporary sideways price movement between two horizontal trendlines during a strong uptrend. In this formation, the asset’s price bounces between the two parallel trend lines before the overall uptrend continues.
To be properly defined as Bullish Rectangle, the price should touch each trendline at least twice with two different valleys and peaks before it breaks the top trendline of resistance. Once the price of the asset closes above the upper trendline, the investor should buy the asset or enter a long position.

2. Bearish Rectangle
The Bearish Rectangle is a continuation pattern depicted by temporary sideways price movement between two horizontal trendlines during a strong downtrend. In this formation, the asset’s price bounces between two parallel trend lines before the overall downtrend continues. To be properly defined as Bearish Rectangle, the price should touch each trendline at least twice with two different valleys and peaks before it drops below the bottom trendline. Once the price of the asset closes below the bottom trendline of support, the investor should either sell the asset or enter a short position
 

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