Candlestick Charting Explained Workbook: Step-by-Step Exercises and Tests to Help You Master Candlestick Charting

4CONTINUATION PATTERNS: THE NEXT ATTACK WAVE

A continuation pattern represents a period of rest for price action during the prevailing trend. In militaristic terms, think of this time as an army resting before it launches its next offensive (trend continuation). Unlike reversal patterns, which warn of a pending change in price direction, continuation patterns offer a chance to either establish new positions or add to existing positions in the direction the market is already moving. While no trade entry is risk-free, the odds are better stacked in favor of the trader when he or she trades in the direction of existing capital flows. Just as with reversal patterns, a trend must be in place for these patterns to have meaning. Since these are labeled ...