What are Continuous Patterns? And how important is it to technical analysis? The answer is that this pattern is like a trend break. Before moving further following the same trend, the break took this force. It"s a stop to look at the stance of traders in the market. To see if the old trend will continue to run which patterns can be classified can be in many forms.
For exampletriangles patterns. This pattern forms a triangular shape before the price continues to move in the same direction. It is divided into 3 types: symmetry, ascending and descending.
Flags and pennants. Think of the appearance of flags as a flying square flag, and pennants as a flying flag. But it"s a triangular flag!