Continuation Pattern


DEFINITION of 'Continuation Pattern'

A technical analysis pattern that suggests a trend is exhibiting a temporary diversion in behavior, and will eventually continue on its existing trend.

The symmetrical triangle charts displayed below are both exhibiting a continuation pattern. Notice how the chart extends above (below) its existing pattern.

Continuation Pattern

BREAKING DOWN 'Continuation Pattern'

Continuation patterns tend to be the most accurate when the trend has existed for around one to three months.

The most common types of continuation patterns are triangles, flags and wedges.

  1. Trend

    The general direction of a market or of the price of an asset. ...
  2. Chartist

    An individual who uses charts or graphs of a security's historical ...
  3. Flag

    A technical charting pattern that looks like a flag with a mast ...
  4. Triangle

    A technical analysis pattern created by drawing trendlines along ...
  5. Wedge

    In technical analysis, a security price pattern where trend lines ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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