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Continuation Candlestick Patterns

Continuation candlestick patterns, which form the basis of one of the most popular strategies used by traders on a daily basis, signal that the prevailing trend is likely to continue after a temporary pause is finished and the breakout is confirmed. Continuation formations are the opposite of reversal patterns. Below are the different types of continuation reversal candlestick patterns:

Doji

Doji pattern is a candlestick pattern of indecision which is formed when the opening and closing prices are almost equal. It is formed when both the bulls and bears are fighting to control prices but nobody succeeds in gaining full control of the prices.

Spinning Top

The spinning top candlestick pattern is same as the Doji indicating indecision in the market. The only difference between spinning top and doji is in their formation, the real body of the spinning is larger as compared to Doji.

Falling Three Methods

The “falling three methods” is a bearish, five candle continuation pattern which signals an interruption, but not a reversal, of the ongoing downtrend. The candlestick pattern is made of two long candlestick charts in the direction of the trend i.e downtrend at the beginning and end, with three shorter counter-trend candlesticks in the middle.

Rising Three Methods

The “rising three methods” is a bullish, five candle continuation pattern which signals an interruption, but not a reversal, of the ongoing uptrend. The candlestick pattern is made of two long candlesticks in the direction of the trend i.e uptrend  in this case. at the beginning and end, with three shorter counter-trend candlesticks in the middle.

Upside Tasuki Gap

It is a bullish continuation candlestick pattern which is formed in an ongoing uptrend. This candlestick pattern consists of three candles, the first candlestick is a long-bodied bullish candlestick, and the second candlestick is also a bullish candlestick chart formed after a gap up. The third candlestick is a bearish candle that closes in the gap formed between these first two bullish candles.

Downside Tasuki Gap

It is a bearish continuation candlestick pattern which is formed in an ongoing downtrend. This candlestick pattern consists of three candles, the first candlestick is a long-bodied bearish candlestick, and the second candlestick is also a bearish candlestick formed after a gap down. The third candlestick is a bullish candle that closes in the gap formed between these first two bearish candles.

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