Continuation Pattern
Any pattern that forms mid-trend and resolves in the same direction as the prior move — flags, pennants, and triangles are the most common.
A Continuation Pattern is a pause or consolidation within an existing trend that — once resolved — is followed by a resumption of the prior trend direction. They represent periods of digestion rather than reversal.
Common bullish continuation patterns: Bull Flag, Ascending Triangle, Pennant, Rectangle, Falling Wedge. Common bearish: Bear Flag, Descending Triangle, Rising Wedge.
- The trend context before the pattern determines whether it is continuation or reversal — the same shape can be both depending on location.
- Volume contraction during the pattern and expansion on the breakout are the hallmarks.
Related Terms
Ascending Triangle
A coiling pattern with a flat upper resistance line and rising lower trendline, typically resolving in a bullish breakout.
BeginnerBear Flag
A sharp downward pole followed by a tight, slightly upward-drifting channel — a continuation setup that resolves lower once the flag breaks.
BeginnerBreakout Retest
Price returning to test the former breakout level after the initial break — a resistance-turned-support confirmation and lower-risk entry point.
BeginnerBull Flag
A sharp upward pole followed by a tight, slightly downward-drifting consolidation channel — a high-probability continuation setup in strong uptrends.
BeginnerCup and Handle
A rounded bowl-shaped base followed by a small downward drift (the handle) — a bullish continuation pattern preceding a breakout to new highs.
IntermediateDescending Triangle
A coiling pattern with flat lower support and a declining upper trendline, typically resolving in a bearish breakdown.
BeginnerFlag
A brief rectangular consolidation against the prior trend, bounded by parallel trendlines — a high-frequency continuation setup.
BeginnerPennant
A pole followed by a small symmetrical triangle — a tight continuation coil that resolves in the direction of the prior thrust.
BeginnerRectangle Pattern
Price oscillates between two horizontal parallel levels — a neutral consolidation that resolves in either direction, often continuing the prior trend.
BeginnerReversal Pattern
Any pattern that signals a change in the prevailing trend direction — Head and Shoulders, Double Tops/Bottoms, and wedges at extremes are classic examples.
BeginnerSymmetrical Triangle
Converging trendlines with lower highs and higher lows, signalling a coil of indecision that typically breaks in the direction of the prior trend.
Beginner