Continuation Candlestick Patterns

Continuation Candlestick Patterns

There are basically 12 types of Continuation Candlestick Patterns.

Continuation Candlestick Patterns

Upside Tasuki

Continuation Candlestick Patterns #1 – Upside Tasuki Gap – A white candle after it gaps up from a prior white candles (Bullish). If this gap is not filled, it means the bullish trend has maintained control and if it is filled it means the bullish trend has likely reached the end.

 

 

 

 

Continuation Candlestick Patterns

Downside Tasuki

Continuation Candlestick Patterns #2 – Downside Tasuki Gap – This is found during a downward trend. A black candle will form after it gaps  down from its previous black candle. If the gap does not fill, it means the bears have maintained and resumed control and if the gap is filled it means the bearish trend has come to a likely end.

 

 

 

 

Continuation Candlestick Patterns

On Neck Line

Continuation Candlestick Patterns #3 – On Neck Line – This is a bearish pattern that indicates the pattern does not quite reach the previous days close it only reaches its low. These occur during a down tend.

 

 

 

 

Continuation Candlestick Patterns

In Neck Line

Continuation Candlestick Patterns #4 – In Neck Line – This is exactly like the on neck line except for the fact that is closes at or slightly above the previous days close. This does not necessarily signal a change in trend and it is recommended that confirmation be made before making decisions based on this candlestick.

 

 

 

 

Continuation Candlestick Patterns

Thrusting

Continuation Candlestick Patterns #5 – Thrusting – Another pattern that is exactly like the on neck line except that it closes very close but slightly below the mid point of the previous days real body. The body of the thrusting candle is usually bigger than the bodies of the on neck and in neck lines.

 

 

 

 

Continuation Candlestick Patterns

Falling Three

Continuation Candlestick Patterns #6 – Falling Three Method – A five candle signal that uses one large black candle, three small black or white candles, and another large black candle. The three small candles are usually white given the fact that the beginning candle is black. It is the upward trend of the small candles that are important and their placement.

 

 

 

 

Continuation Candlestick Patterns

Rising Three

Continuation Candlestick Patterns #7 – Rising Three Method – This is the opposite of the Falling Three Method. It contains five candles in all beginning and ending with large white candles. The three small bodied candles progressively get lower and lower on the body of the first candle. It signifies a resting point for the market.

 

 

 

 

Continuation Candlestick Patterns

Side by Side White Lines

Continuation Candlestick Patterns #8 – Side By Side White Lines – This occurs during an up trend and the first white candle usually gaps considerably above the previous white candle. The second white candle opens at the previous days open and closes slightly below the previous days close. It signifies a pause or stalemate in the activity trend.

 

 

 

 

Continuation Candlestick Patterns

Separating Lines

Continuation Candlestick Patterns #9 – Separating Lines – This pattern is defined as lines that move in opposite directions. It appears when the market is experiencing an upward trend and suddenly there is a “pullback” and the price drops. The following session opens the same as it did the previous day and continues on an upward trend.

 

 

 

 

Continuation Candlestick Patterns

Mat Hold

Continuation Candlestick Patterns #10 – Mat Hold – Another five candle pattern that occurs when the third day body dips into the body of the first day after an up gap on the second day. It is a stronger continuation pattern than your Rising Three Method however, the price remains in the upper range of the white candle.

 

 

 

 

Continuation Candlestick Patterns

Three line strike

Continuation Candlestick Patterns #11 – Three Line Strike – This signal is also called the Fooling Three Soldiers. It is a four line pattern that appears during a confirmed trend and signifies a resting period for the market. It ends as a three white soldier pattern.

 

 

 

 

Continuation Candlestick Patterns

Upside Gap 3

Continuation Candlestick Patterns #12 – Upside Gap Three Method – This is another three candle pattern similar to the Upside Tasuki gap and occurring in a strong trend. If the trend is an upward trend it appears between two white candles. The final day opens in the top white body and closes in the lower white body. This, the final candle, fills the gap between the two white bodies.

 

 

Continuation Candlestick Patterns Conclusion

When it comes to Continuation Candlestick Patterns these are all you need to know.  Continuation Candlestick Patterns can be your best friend. Some of the lowest risk trades you will find will bt he result of observing a trend as it “fails to fail” but instead continues into a wave 2 or 3 impulse wave and these Continuation Candlestick Patterns will prove to be your key to pinpointing these profitable set-ups.

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