Technical Analysis Windows (Gaps) Part 3

Continuation Windows

A continuation window will be found halfway through a running trend, often after a short consolidation pattern like a flag or a pennant, or a bigger correction pattern like a triangle or a rectangle.

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Rising Continuation Window

Almost all of the rising continuation windows (figure 4.74) on a daily chart are closed within a year.

Only about 5% will be closed within a week.

Usually the continuation window is created with high volume or a gradually higher volume with a number of bars before the continuation window.

Figure 4.74: Rising continuation window.

Falling Continuation Window

Almost 100% of the falling continuation windows (figure 4.75) on a daily chart are closed within a year.
 
Only 5% will be closed within a week.

Usually the continuation window is created with high volume or a gradually higher volume with a number of bars before the continuation window.

Figure 4.75: Falling continuation window.

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