Continuation Patterns by Amy Wu
The rising three and falling
three candlestick patterns
can help you confirm trends,
add to positions,and grant
you a cease-fire from the
battle between the bulls and
extends well beyond
and resistance levels
market tops and
bottoms. Active markets always
attract traders, but sometimes
recognizing market inaction is as
necessary as finding activity in
the market. There are times to sell,
times to buy, and times to rest, and
the continuation pattern
recognizes those times to rest. But
just because the market is resting
doesn’t mean you should be.
Continuation patterns are an
excellent way to confirm trends,
add to positions, or even trade on the short side.
CANDLE BASICS REVISITED
Candlesticks, which originated in Japan several hundred
years ago, are a unique and subtle way of looking at charts.
Usually, we think of bars when we want a security charted.
But candlesticks are only a different form of bar charts, a
form that lends greater insights.