Continuation Chart Patterns Bitcoin Chart Patterns - Continuation Bitcoin Patterns
When these continuation chart patterns are formed on the Bitcoin trading chart they confirm that the current Bitcoin price trend is going to continue moving in the same direction.
These continuation chart patterns are used by Bitcoin traders to identify halfway points of the trend; this is because these continuation patterns form at the halfway point of a trend.
There are four types of continuation chart patterns:
- Ascending triangle chart pattern
- Descending triangle chart pattern
- Bull flag/pennant chart pattern
- Bear flag/pennant chart pattern
Ascending Triangle Continuation Chart Pattern
The ascending triangle chart pattern is formed in an uptrend and it shows that the upward direction of the market is going to continue.It shows that there is a resistance level that the buyers keep pushing each time moving it higher, and once this resistance level breaks price will continue moving upward.
The overhead resistance temporarily prevents the Bitcoin market from advancing higher, while the rising trend line beneath the pattern signals that buyers are still present. An upside penetration of the upper trend line is a technical buy signal for a market breaking out from an ascending triangle chart pattern.
This ascending triangle continuation chart pattern is found within a Bitcoin prices upward trend, the ascending triangle forms as a consolidation period within the uptrend and indicates an upside price continuation will follow.
Ascending Triangle Continuation Chart Pattern - Bitcoin Trading
The market formed an ascending triangle chart pattern during its upward trend which led to an upside price continuation. The buy point is when price clears the upper sloping line and the market continues moving upwards.
Descending Triangle Chart Pattern
The descending triangle chart pattern is formed in a downtrend and it shows that the downward direction of price movement is going to continue. It shows that there is a support level that the sellers keep pushing each time moving it lower, and once this support level breaks price will continue moving downwards.
The support level temporarily prevents the bitcoin market from declining lower, while the descending sloping line above the descending chart pattern signals that sellers are still present. A downside penetration of the lower line is a technical sell signal for a market breaking downwards from a descending triangle chart pattern an indication that selling will follow.
Found within a Bitcoin price downtrend, the descending triangle forms as a consolidation period within the downtrend and indicates downside continuation of price movement will follow.
Descending Triangle Continuation Chart Pattern - Bitcoin Trading
The Bitcoin market formed a descending triangle during its downtrend which led to further selling and a continuation of the downward trend. The technical sell signal is when price breaks the lower horizontal sloping line as selling resumes to push the market lower.
Bull Flag/Pennant
This continuation Bull Flag chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the price until the price breaks out. In general, the flag will not be perfectly flat but it will be sloping.
The bull flag chart pattern is found within a Bitcoin price upward trend. In this continuation chart pattern the market retraces slightly and this bull flag chart pattern can be considered as a slight retracement with narrow price action that has a slight downward tilt. The technical buy point is when price penetrates the upper line of the bull flag. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.
The bull flag pennant chart pattern occurs at halfway point of a bullish upward trend and after a price breakout - a similar move equal to the height of the flagpole is expected.
Bull Flag Pennant Continuation Chart Pattern - Bitcoin Trading
The bull pennant continuation chart pattern above was just a resting period as the market gathered strength to break out and move higher. The continuation signal was confirmed when the upper line was broken to the upside.
Bear Flag/Pennant Chart Pattern
This bear flag chart pattern is found in a Bitcoin price downward trend. The bear flag pattern is a continuation chart pattern where the price retraces slightly with a narrow price action that has a slight upward tilt. The technical sell point is when price penetrates the lower line of the inverted bear flag pattern. The pennant portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.
Bear Flag Pennant Chart Pattern - Bitcoin Trading
The bear flag pennant chart pattern above was just a resting period for the market prior to more selling. The bear flag continuation chart pattern signal was confirmed when the lower line was broken to the downside.
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