Continuation Patterns

Pennant

The pennant is one of the many continuation price patterns. The pennant is identified by two converging trendlines and is typically more horizontal. Volume is light during its formation. Pattern is completed on the penetration of the upper trendline. The breaking of the trendline to the upside should take place on heavier volume while if the pennant is a continuation pattern on a bearish move, heavy volume on the continuation breakdown is not as critical.

Rectangle

Rectangles are usually continuation patterns. A breakout of the trendline to either direction signifies the continuation of a prior trend after trading sideways for a majoring of the period.

Next: Conclusion


    Table of Contents
  1. Introduction
  2. Technical Analysis Explained
  3. Building Blocks of Technical Analysis: Charts
  4. Building Blocks of Technical Analysis: Trendlines
  5. Building Blocks of Technical Analysis: Moving Averages
  6. Building Blocks of Technical Analysis: Indicators - RSI
  7. Building Blocks of Technical Analysis: Indicators - Bollinger Bands
  8. Building Blocks of Technical Analysis: Indicators - MACD
  9. Building Blocks of Technical Analysis: Price Patterns - Reversal Patterns
  10. Building Blocks of Technical Analysis: Price Patterns - Continuation Patterns
  11. Conclusion
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