Chapter 5
Candlestick Continuation Patterns
Candlestick continuation patterns represent a period of rest, or consolidation, in an existing trend. The formation of these patterns indicates that the side driving the trend (buyers in an uptrend or sellers in a downtrend) is taking a breather by either locking in profits or waiting for slightly better levels at which to buy or sell.
CHAPTER OBJECTIVES
In this chapter, you will
• Learn the purpose of continuation patterns
• Identify the types of continuation patterns
• Confirm continuation patterns
• Understand trading examples of continuation patterns
The advantage of identifying and trading with continuation patterns is that they can give a trader a safer entry point at which to either jump ...
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