Continuation patterns signal if the increase or the decrease continues.
Very important to remember that trading is not an exact science. Using these candlestick patterns mentioned so far and also the ones in this part alone is not enough and should be combined with other trading techniques.
Using these patterns without considering the larger context of the market can be dangerous.
Upside Tsuki Gap
This pattern signals a possible continuation of the already rising price. It will appear amid the increase process and means the price will continue to increase. The candles can have tails but Id didn’t include them in the image.
The two small candlesticks may not be aligned completely and one may be upper or lower than the other.
The pattern includes a large enough green candle followed by a gap up where a small green candle appears followed by an almost same size red candle.
It is important to note that this pattern is translated as a bullish continuation pattern if it appears inside an uptrend.
Pay attention that the red candle didn’t fill the gap between the first two green candles.
Downside Tsuki Gap
This pattern signals a possible continuation of the already falling price. It will appear amid the falling process and means the price will continue to fall. The candles can have tails but Id didn’t include them in the image.
The two small candlesticks may not be aligned completely and one may be upper or lower than the other.
The pattern includes a large enough red candle followed by a gap down where a small red candle appears followed by an almost same size green candle.
It is important to note that this pattern is translated as a bearish continuation pattern if it appears inside a downtrend.
Pay attention that the green candle didn’t fill the gap between the first two red candles.
Bullish Three Line Strike
It happens when the price is going up and signals a continuation to the upside.
Three consecutive bullish candlesticks (small to medium-sized) followed by one large bearish candlestick that closes more or less where the first candle in a pattern opened.
Usually, the fourth candle in this pattern closes almost where the first candle opened. In the image, this hasn’t happened exactly.
This may sound counterintuitive but when this pattern appears in an uptrend, it is a bullish pattern signaling the continuation of the uptrend.
The strike candle (the fourth one) begins at or higher than the third candle.
Bearish ThreeLine Strike
It happens when the price is going up and signals a continuation to the upside.
Three consecutive bearish candlesticks (small to medium-sized) followed by one large bullish candlestick that closes more or less where the first candle in a pattern closed.
Usually, the fourth candle in this pattern closes almost where the first candle closed. In the image, this hasn’t happened exactly.
This may sound counterintuitive but when this pattern appears in a downtrend it is a bullish pattern signaling the continuation of the downtrend.
The strike candle (the fourth one) opens at or lower than the close of the third candle.
Rising Three Methods
It happens when the price is going up and signals a continuation to the upside.
Bullish Mat Hold
It happens when the price is going up and signals a continuation to the upside.
Falling Three Methods
It happens when the price is going down and signals a continuation to the down.
Bearish Mat Hold
It happens when the price is going down and signals a continuation to the down.
Thanks for reading. You can follow to stay updated. You can easily register for free to Newsbreak to get the most advantage of this good platform.
Comments / 0