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Flag - Continuation Chart Pattern
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Continuation Chart
A chart in which the price scale for the data for the end of a given contract and the data for the beginning of the next contract are merged in order to ease the transition of one contract to the next.
A continuation chart pattern formed when there is a large movement in a security, followed by a consolidation period with converging trendlines, which forms the pennant. The pennant is typically followed by a resumption of the initial trend movement.
Flag: A continuation chart pattern that generally lasts less than three weeks and resembles a parallelogram that slopes against the prevailing trend. The flag represents a minor pause in a dynamic price trend.
Bear flags are continuation chart patterns found within a downtrend. They are formed after a steep price decline by two tight parallel upward sloping trend lines in a near 35-45 degree angle.
Pennant: A continuation chart pattern that is simliar to the flag, except that it is more horizontal and resembles a small symmetrical triangle.
Symmetrical triangles are part of a set of tools called ‘Triangles’ which fall under the category of continuation chart patterns for technical analysis. These triangles can be regarded as showing horizontal trading patterns.
The Flags and pennants chart, similar to the head and shoulders chart, can be categorized as continuation chart patterns. These short-term congestion patterns have stood the test of time as one of the most reliable methods of technical analysis.
Descending Triangles are bearish and are usually found in downtrends in stocks as continuation chart patterns.
The correction made a triangle continuation chart pattern, with a breakout to the upper side.
Now take a look at a continuation chart of SNSS since the first chart on this page above: ...
On the markets I was following, I plotted the daily high, low and close on the daily bar chart and drew trend lines with a ruler and pencil. For the longer-term monthly and weekly continuation charts for nearby futures, ...
 See also: Continuation, Chart, Pattern, Trend, Trading
  
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