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12 Candlestick Bullish and Bearish Trend Patterns Continuation

Candlestick Continuation Pattern For Forex Trading and Binary IQ Options

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To win or benefit from the binary options trading or forex trading, traders must be able to analyse price movements next.

Whether the next movement will go up or down?

Therefore, it takes a mature trading strategy, one of the strategies is to rely on candlestick formations that appear on the chart.

With the master and get to know various kinds of candlestick patterns, the trader will be able to predict where the next movement direction, among them:
  • Is the next movement will turn direction (reversal candlestick Pattern)
  • Is the next movement will continue the trend earlier (continuation candlestick Pattern)
  • Is the next movement will be a sideways trend (candlestick pattern of consolidation)
  • When the trend of sideways will end (candlestick patterns post consolidation)

Each trader would certainly never hesitated in deciding open positions, such as whether the movement would turn its direction or forward direction.
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By understanding the various kinds of candlestick patterns, I wish the trader can be more confident and more sure of where the direction of price movement.

In this article, I will explain what the pattern indicates that the price movement will continue the previous trend direction called continuation candlestick patterns.

What kind of patterns including pattern candlestick continuation? The following explanation:

12 CANDLESTICK CONTINUATION PATTERN


Candlestick Continuation Pattern is candlestick patterns that indicate a pause occurs on the trend and the trend will continue again
bullish continuation candlestick pattern


Here are some candlestick patterns that indicate a continuation of price movements:


1. UPSIDE GAP THREE METHODS
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Type: Bullish Continuation Pattern

Description:
  1. While the uptrend going bullish candle with a long body.
  2. The next session gap up and make higher close.
  3. the third Session was opened in the lower part of the body the previous candle and closed lower and closed the gap.

Psychology:

The time gap, the market tendency is trying to close the gap. When the gap is closed, the market is still potential to continue the trend again.

Note:
  • This pattern less reliability so that the next session of the confirmed requires IE closed higher than the third candle.

2. SIDES-BY-SIDES WHITE LINES
bullish continuation candlestick pattern

Type: Bullish Continuation Pattern

Description:
  1. While the uptrend going bullish candle with a long body.
  2. the next session of the gap and make the higher close.
  3. third Session opened more of the same or close to the open the previous candle and closed lower from the previous close candle with low almost the same also with low previous

Psychology:

After a gap and create higher prices close the market opened down close to the open of the previous candle. It shows the market is trying to close the gap but to no avail.

Failure closing the gap gave a sign that the uptrend will continue again.

Note:
  • The pattern is quite reliable and entries can be made at the next session.

3. The UPSIDE TASUKI GAP

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Type: Bullish Continuation Pattern

Description:
  1. While an uptrend bullish candle occurred with a long body.
  2. The next session gap up and make higher close.
  3.  Third Session opened lower than the previous close and closed lower than the previous low but was unable to close the gap.

Psychology:

The gap can become a resistance level and strong support. The event of a reversal but was unable to close the gap then shows lack of commitment among market participants so the price could potentially return moves up again.

Note:
  • This pattern is typically followed by a decline in volume in the third candle.
  • This pattern requires confirmation the next session, namely the price moves up above the third candle.

4. The DOWNSIDE TASUKI GAP
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Type: Bearish Continuation Pattern

Description:
  1. While downtrend bearish candle occurred with a long body.
  2. The next session gap down and create a lower close.
  3. Third Session opened higher than the previous close and closed higher than the previous low but was unable to close the gap.

Psychology:

The gap can become a resistance level and strong support. The event of a reversal but was unable to close the gap then shows lack of commitment among market participants so prices potentially moving back down again.

Note:
  • This pattern is typically followed by a decline in volume in the third candle.
  • This pattern requires confirmation the next session, that the price moves down under the third candle.

5. DIVIDING LINES
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Type: Bullish Continuation Pattern

Description:
  1. While an uptrend price make a gap up but later reversed course and closed lower from the previous session
  2. The next session opened with the same open candle first and further direct ride so that opening marubozu was formed.

Psychology:

When price makes a new high but later reversed course and closed lower indicates the seller has tried to take control of the buyer.

However, when the next session is opened the same as the open the previous session and then immediately move up, then show the buyer has again taken control and the trend can be continued.

Note:
  •  This pattern is typically followed by a decrease in volume.

6. THREE LINE STRIKE
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Type: Bullish Continuation Pattern

Description:
  1. While an uptrend bullish candle contains three happened in sequence.
  2. The next session opened higher and further prices reversed course and closed below the bullish candle three forming outside of the three-day bullish candle.

Psychology:

At the moment there is three sequential candle in the bullish uptrend suggests that the buyer is very dominant. However, when price makes a new high and going on a short-term pullback, indicating a successful sellers control.

However, these controls generally are temporary because it is only a short-term pullback and
Open the form reversal.

Note:
  • The Volume in the event of a short-term pullback should be low.
  • Confirmation of the next session is required, namely, the price moves up above the last candle.

7. ON the NECKLINE
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Type: Bearish Continuation Pattern

Description:
  1. While downtrend bearish candle occurred with a long body.
  2. The next session gap down but prices reversed course and closed under the close first candle with a body which is also smaller than the body of the first candle.

Psychology:

When the downtrend gap down but at the end of the session prices closed strengthened the buyer indicates control session.

However, this is often misinterpreted as a reversal because this only temporarily and then the seller will again take control.

Note:
  • This pattern is typically followed by a decline in volume in the second candle.
  • This pattern requires confirmation the next session, that the price moves down low under the second candle.

8. IN NECKLINE
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Type: Bearish Continuation Pattern

Description:
  1. While downtrend bearish candle occurred with a long body.
  2. The next session gap down but prices reversed course and closed above the close of the first candle with a body which is also smaller than the body of the first candle.

Psychology:

When the downtrend gap down but at the end of the session prices closed strengthened the buyer indicates control session.

However, this is often misinterpreted as a reversal because this only temporarily and then the seller will again take control.

Note:
  • This pattern is typically followed by a decline in volume in the second candle.
  • This pattern requires confirmation the next session, that the price moves down low under the second candle.

9. THRUSTING
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Type: Bearish Continuation Pattern

Description:
  1. While downtrend bearish candle occurred with a long body.
  2. The next session gap down but prices reversed course and closed above the close of the first candle (but still below the middle of the body first candle) with a body larger than the body of the candle first.

Psychology:

When the downtrend gap down but at the end of the session prices closed strengthened the buyer indicates control session.

However, this is often misconstrued interpret as a reversal because this only temporarily and then the seller will again take control.

Note:
  • This pattern is typically followed by a decline in volume in the second candle.
  • This pattern requires confirmation the next session, that the price moves down low under the second candle.

10. FALLING THREE METHODS
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Type: Bearish Continuation Pattern

Description:
  1. While downtrend bearish candle occurred with a long body.
  2. The next session opened lower but then the price reverses direction so that it formed a bullish candle and closed in on a third body candle first.
  3. The next session can be either bullish or bearish candle with open or close at the top of the second candle.
  4. The fourth Candle be the bullish candle with close on or near the open first candle
  5. The next session opened higher and closed lower than fourth candle forming outside day and bearish candle.

Psychology:

The event of a downtrend reversal occurs and then with three small bodies as well as not being able to ride the first session exceed shows lack of commitment among market participants to support the uptrend.

The change of this sentiment is not convincing enough to stop the downtrend.

Note:
  • This pattern will be more significant if the volume of the candle first and last volume was higher than in the second to the fourth candle.

11. The RISING THREE METHODS
candlestick continuation pattern

Type: Bullish Continuation Pattern

Description:
  1. While the uptrend going bullish candle with a long body.
  2. The next session opened higher but later reversed course prices so bearish candle formed and closed in on a third body candle first.
  3. The next session can be either bullish or bearish candle with open or close under the second candle.
  4. The fourth Candle in the form of a bearish candle with close on or near the open first candle
  5. The next session opened with the same close fourth candle but the price is moving up so formed bullish candle with a long body.

Psychology:

When the uptrend reversal occurs and then with three small bodies as well as not being able to drop below the first session showed a lack of commitment among market participants to support the downtrend.

The change of this sentiment is not convincing enough to halt the uptrend.

Note:
  • This pattern will be more significant if the volume of the candle first and last volume was higher than in the second to the fourth candle.

12. MAT HOLD
bullish continuation candlestick pattern

Type: Bullish Continuation Pattern

Description:
  1. While the uptrend going bullish candle with a long body.
  2. The next session opened higher but then went down and closed above the close of the first candle.
  3. The next session can be either bullish or bearish candle with a body to body first candle range.
  4. The fourth Candle in the form of a small body with a bearish candle low similar to the low of the previous candle.
  5. The next session opened at the top of the fourth but the candle close price moves up so formed bullish candle with a long body.

Psychology:

When the uptrend reversal occurs and then with three small bodies as well as not being able to drop below the first session showed a lack of commitment among market participants to support the downtrend.

The change of this sentiment is not convincing enough to halt the uptrend.

Note:
  • This pattern will be more significant if the volume of the candle first and last volume was higher than in the second to the fourth candle.

That's 12 kinds of candlestick formation that indicates price movements are not so reversed direction but will forward movement of the previous trend.

So you will be more careful in executing the open position trading. Do not miss also to learn about and understand other candlestick patterns.

Read also:


Hopefully, this article can help you to play trading and profits consistently.

Maybe useful and profit.

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