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Technical Analysis Candlestick charts Part 6

Continuation Patterns

Bullish Continuation Patterns

 
Bullish Three-line Strike

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Bullish three-line strike

In an uptrend, there are three or more days of higher prices, followed by a big black candle covering most of the previous bars’ up-move.

Wait for a confirmation.

Bullish three-line strike example

Rising Three

Rising three

In an uptrend, a big white candle is followed by a number of small, mostly black bodies. The pattern ends with a big white candle with a new high price.

Rising three example

Mat Hold

Mat hold

This is a variation of the rising three. In an uptrend, a big white candle is followed by a small candle with a rising window and a lower closing price, forming an evening star pattern. Next, there are a number of small, mostly black candles. The pattern ends with a big white candle with a new high price.

Mat hold example

Separating Lines

Seperating lines

In an uptrend, a black body is followed by a white body with the same opening price.

Seperating lines example


Bearish Continuation Patterns

 

Bearish Three-line Strike

Bearish three-line strike

In a downtrend, there are three or more days of lower prices, followed by a big white candle covering most of the previous bars’ down-move.

Wait for a confirmation.

Bearish three-line strike example

Falling Three

Falling three

In a downtrend, a big black candle is followed by a number of small, mostly white bodies. The pattern ends with a big black candle with a new low price.

Falling three example

In-neck Line, On-neck Line

In-neck line, on-neck line

In a downtrend, a relatively big black body is followed by a white body with a lower opening price than the black candle’s closing price. With the in-neck line, the white body closes just within the black body. With the on-neck line, the white body closes within the lower shadow of the black body.
Confirmation is required.

In-neck line, on-neck line example

 
Thrusting Line

Thrusting line

In a downtrend, a relatively big black body is followed by a white body with a lower opening price than the black candle’s closing price. The white body closes below the midpoint of the black body, not forming a piercing line.
Conformation is required.

Thrusting line example

Separating Lines

Separating lines

In a downtrend, a white body is followed by a black body with the same opening price.

Separating lines example

Candlestick Charts Next -Previous -Part 1 -Part 2 -Part 3 -Part 4 -Part 5 -Part6 -Part7

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Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

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