Continuation is an extension by which something is carried to a further point.
In trading it is called a Continuation pattern, were there is an extension of trend above the anticipated level of Support, Resistance, Trendline and Channels.This article will make traders to understand what to look at for when price hit Support, Resistance, Trendline and Channels.
If you have taken time to read my previous articles,you will observed that I have written so much on Reversal Candle Patterns.
When trading any Market using Pure Price Action strategy two things must come to mind when trying to place a position. It is either you are starting a new trend from Support,Resistance,Trendline and Channel when candle reversal patterns are formed or you want to place a position in an already existing trend.
This Article will address the second one.
The full formation of Price Continuation patterns will be explained below therefore keep reading.

TOOLS FOR PRICE CONTINUATION PATTERNS.
Continuation Pattern is a part of Pure Price Action Strategy that do not involve the use of custom indicators and indicators like RSI, Moving Averages etc.The tools required for Price Continuation Pattern includes the following;
Support, Resistance, Trendline, Channels,Momentum Bar and five Candle Continuation Patterns which are Pinbar, Railway Track, Outside Bar, Inside Bar, and Doji (Spinning Top).

FULL DESCRIPTIONS OF PRICE CONTINUATION PATTERN
Buy trigger are place at the Support, Lower Trenline and Lower Channels while sell trigger are placed at the Resistance, Upper Trendline and Upper Channel when price hit the Support or Resistance line then reacted to form a good candle reversal pattern. But there are situations were price do not react to for a reversal patten but breaks-out from Support, Resistance, Trendline and Channel, the price will continue to trend in that direction. At this point one need to understand the principle behind bearish and bullish continuation patterns before it can be applied. This article will address it for you to really understand how to identify Price Continuation pattern. To identify the continuation pattern, the Momentum Bar, Support, Resistance,Trendline, Channel and the five candle reversal patterns will be put into consideration.
In well drawn Support,Resistance,Trendline and Channel, price will form a very big candle with a wide spread bar called Momentum Bar. The Momentum Bar is a confirmation showing that the price will trend towards the direction and immediately after the Momentum Bar closed wait for the next candle or candle that will retest the drawn Support,Resistance,Trendline and Channels forming any of the five candle continuation patterns mentioned above. When these are established the position is good to take using good trigger strategy.The image below will help you to understand the explanations of Continuation Patterns.

http://screencast.com/t/ZjgoNUuy

Let us look at images few Price Continuation patterns across the time frame with full explanations

http://screencast.com/t/cV5gqRkK3RdE

The screen-shot above is GBPUSD four hours chart showing a Bearish Price Continuation Pattern.The bearish Momentum Bar broke-out that is highlighted broke-out from the support the price pulled backed to retest the Support reacted to form Bearish Pinbar Continuation pattern.

http://screencast.com/t/7mmgBXgztk

The screen-shot above is EURCAD daily chart showing a bullish price continuation pattern.The Bullish Momentum Bar, broke-out from the Resistance showing that the market is still very bullish. As the Bullish Momentum Bar closed, price formed a bullish candle continuation patter. At that point one will confidently trigger a buy button using good trigger strategy.

http://screencast.com/t/cpwKQMhdQ

The screen-shot above is also EURCAD daily chart showing a bearish price continuation pattern.The Bearish Momentum Bar, broke-out which from the Support showing that the market is still very bearish. As the Bearish Momentum Bar closed , then price pulled back to re-test the Support forming a bullish candle continuation pattern. At that point one will confidently trigger a sell button using good trigger strategy.

http://screencast.com/t/J2nmifPl

The chart above is also EURCAD Daily. It shows bearish and bullish continuation pattern at different days and time.
The bullish continuation pattern is at the left side of the chart. The bullish Momentum Bar broke-out from the Resistance as price hit the Resistance indicating that the market is still maintaining a strong bullish trend. The following days price reacted and re-tested the Resistance to form a bullish continuation Spinning Top pattern.
The Bearish Continuation pattern formed at the right hand side of the chart were the bearish momentum bar hit the support and broke-out from it. Then price pulled back to re-test the Support and reacted to form a bearish continuation Outside Bar.

http://screencast.com/t/mnDSRGzfbLs

The above chart is USDNOK weekly chart.This is to let you know that the continuation pattern form in any time frame. The chart shows a Bearish Momentum Bar which broke-out from the Support showing that the market is still very bearish. As the Bearish Momentum Bar closed , price pulled back to re-test the Support to form a bullish Pinbar candle continuation pattern. At that point one will confidently trigger a sell button using a good trigger strategy.

http://screencast.com/t/WfOuv6GNQN

The screen-shot above is GBPUSD four hours chart showing a Bearish Price Continuation Pattern.The bearish Momentum Bar broke-out that is highlighted broke-out from the support the price pulled backed to retest the Support then reacted to form Bearish Pinbar Continuation pattern.

http://screencast.com/t/Pi9tG2xSsGu

The screen-shot above is EURUSD daily chart showing a bullish price continuation pattern.The Bullish Momentum Bar, broke-out from the Resistance showing that the market is still very bullish. As the Bullish Momentum Bar closed, price pulled backed to re-test the Resistance line after four days to form a bearish Doji Continuation Pattern. It took four days for the set up to be ready that is why it is always recommended that to be a good trader you must learn to be very patient for your strategy to hit 100%.

http://screencast.com/t/l3l4Qdbni

The chart above is also EURJPY four hours chart. It shows bearish and bullish continuation pattern at different days and time.
The bearish continuation pattern is at the left side of the chart. The bearish Momentum Bar broke-out from the Support as price hit the support indicating that the market is still maintaining a strong bearish trend.In this case the Continuation pattern did not form immediately as the previous ones we have seen above. This is why price movement do not maintain a similar patterns in all the chart always.When price finally re-tested the Support it first formed a bearish Pinbar which did not trigger the after some hours it re-tested the support forming a bearish Doji Continuation pattern that finally triggered the sell position.
On the other hand, the Bullish Continuation pattern formed at the right hand side of the chart were the bullish momentum bar hit the Resistance and broke-out from it. Then price pulled back to re-test the Support and reacted to form a two bullish Pinbar continuation Patterns. In this case as well price did not give immediate continuation pattern. It took seven four hours candle to form a good trading set up.

WHAT TO LOOK OUT FOR IN A GOOD PRICE CONTINUATION PATTERN.
Ensure that the follow listen below are well established before taking a Price Continuation patterns as good set up.
  1. You must know how to identify a good swing points
  2. You must know how to draw a good Support, Resistance, Trendline and Channels
  3. Always look out for the Momentum Bar.
  4. Wait for a pullback to re-test the Support, Resistance, Trendline and Channels.
  5. As price re-test Support, Resistance, Trendline and Channels wait for a candle continuation patterns listed above
  6. Before you trigger your entry ensure that you have a good entry strategy.
  7. Before you trigger your entry point check the fundamental time table for news release if it will affect the pair you are considering trading.
  8. Use good money management.
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