In today’s blog, let’s take a look at 7 Strong Candlestick Patterns That Signal a Continuation of the Trend.

Continuation candlestick patterns suggest that after a short break or pause, the current trend is likely to keep going. Traders use these patterns in technical analysis to predict when a trend will resume. Unlike reversal patterns, which signal a potential trend change, continuation patterns help traders spot good entry and exit points during a trend.

5 Strong Candlestick Patterns for Trend Continuation

1. Doji

A Doji candlestick pattern has a small body, where the open and close prices are very close to each other. It shows indecision between buyers and sellers in the market. When a Doji appears during a trend, it can indicate a temporary pause or consolidation, suggesting that if the trend is confirmed, it may continue.

2. Spinning Top

The Spinning Top pattern has a small body with long upper and lower shadows, showing indecision and a balance between buyers and sellers. If the next candle confirms the trend’s direction, a Spinning Top may suggest that the trend could continue.

3. Rising & Falling Three Methods

These patterns consist of a series of candlesticks that signal a consolidation phase within the dominant trend:

• Rising Three Methods: In an uptrend, this pattern features three small bullish candles or Dojis followed by a large bullish candle. It indicates a brief consolidation before the uptrend resumes.
  
• Falling Three Methods: In a downtrend, this pattern shows three small bearish candles followed by a large bearish candle. It suggests a temporary pause in the downtrend before it continues.

4. Tasuki Gap

The Tasuki Gap is a continuation pattern formed by three candles within a trend:

• In an uptrend, a bearish candle creates a gap down after a bullish candle. The third candle is bullish and closes within the gap, suggesting that the uptrend may continue.
  
• In a downtrend, a bullish candle creates a gap up after a bearish candle. The third candle is bearish and closes within the gap, indicating that the downtrend is likely to resume.’

5. Mat-Hold

The Mat-Hold pattern is a continuation pattern in an uptrend, starting with a long bullish candle. This is followed by a small candle, often a Doji, indicating a brief pullback or consolidation. The pattern ends with another long bullish candle, suggesting that the uptrend is likely to continue after the short pause.

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