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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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