Chart Part 4: Continuation Patterns (Triangles, Flags, Wedges)
Triangles, flags and wedges: how trends pause, shake out weak hands, then resume.
By DigitalNepal · Updated 2026-10-04 · Verify current figures on official sources
Try it right here:
Read any single day: who won, buyers or sellers.
HammerBullish
After a fall, price drops hard inside the day but buyers push it back up near the open. Small body on top, long lower wick (2x body). Means sellers tried and failed.
Confirm first: Next candle closes above the hammer high, ideally with bigger volume.
After a sharp move, price often pauses in a tightening shape before continuing. These continuation patterns let you join trends at the resume point instead of chasing.
Open each one in the Chart School tool and notice the shrinking swings before the breakout candle.
Steps
1Ascending triangle
Flat top + rising bottom. Buyers keep bidding higher into the same sellers - usually breaks up. Confirm with a close above the flat top.
2Descending triangle
Flat bottom + falling top. Usually breaks down - close below the flat floor confirms.
3Bull flag
Sharp rally (pole), then a small downward drift (flag). Break above the flag edge to confirm the resume.
4Falling wedge
Two converging falling lines with fading selling. Breaks upward most of the time - wait for the close above the upper line.
Good to know: Never enter inside the squeeze - spreads and fake pokes eat amateurs. Enter on the confirmed break with a stop back inside the pattern.
FAQ
How long do patterns take?
On daily charts, weeks. If you need faster feedback for learning, study the same shapes on hourly charts without trading them.
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