A pattern within a price chart used by traders to understand the price action and make determinations about the possible future of a trend. When continuation patterns occur, traders take them as an indication that a price trend is likely to continue. These patterns typically occur in the middle of a trend and act as a signal that when the pattern has completed, the trend will likely resume. The pattern is considered to be “complete” when the pattern has formed (or can be drawn) and then breaks out of the pattern (ideally continuing the former trend).
Continuation Patterns
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Continuation Patterns.