Continuation Graph Pattern

What does Continuation Graph Pattern mean?

It is almost always easily to look at a price chart and see if prices are trending higher, lower, or sideways.

It is also common to often see short duration price moves that go against the prevailing trend, only for price to then resume its former trend.

These are known as continuation patterns, as they are indicative of a continuation of the prevailing trend.

This type of pattern develops as investors test the soundness of the prevailing pattern and find it to be sound, thus they keep buying in an uptrend or selling in a downtrend and the trend remain intact.