Basics of trend continuation and reversal signals This lesson will cover the following What is a signal bar What do these candles tell us Which signals are good and which to avoid While many technicians wait for different sorts of patterns to form on their chart in order to ensure a higher ...
Unfortunately, simply because the pattern is called a "continuation pattern" does not mean it is always reliable. A pattern may appear during a trend, but a trendreversalmay still occur. It is also quite possible that, once we have drawn the pattern on our charts, the bounds may be slight...
Trend continuation patterns are formed during the pause in the current market trends, and mark rather the movement continuation than its reversal. By contrast with the model of trend reversal, the figures are often formed at shorter time intervals. ...