Continuation candlestick patterns are not as usual as reversal candlestick patterns.
But the size of a candle and its shadows tell about the correction in the market.
For example, small-bodied candles after a reversal is a sign of pause. And if there are not any reversal signals, it can be a continuation candlestick pattern.
Gaps
Gaps are continuation formations. However, there are exceptions. For example, the dumpling top and frypan bottom contain gaps, but their gaps are not huge.
Gaps are so powerful that traders consider them not only a continuation pattern but also strong support and resistance lines.
Separating Lines Candlesticks
Separating lines are dual candle continuation candlestick patterns.
There are bullish and bearish separating lines.
A bullish separating starts in the middle of an uptrend by appearing a large red candle. Then, the new candle opens at the opening price of the first candle and closes as a large green candle.
On the other hand, a bearish separating line starts in the middle of a downtrend by making a large green candle. Next, the new candle opens at the opening price of the first candle but closes way below making a large red candle. After the completion of the pattern, investors expect the continuation of the downtrend.
Related article: Separating Lines Patterns (Strategies & Examples)
Rising Three Methods
A “rising three methods” is a bullish continuation candlestick pattern. This pattern consists of two or more candles.
In a rising three methods starts in the middle of an uptrend. A tall green candle followed by multiple small-bodied candles such as spinning tops appear. These candles may go sideways or have a tiny slope downward. After making one to two large green candles, the pattern is finished, and investors expect the continuation of the uptrend.
Compared to traditional chart patterns, three rising methods resemble a bullish flag. Or, if we change the time frame to a lower period, it could be other formations, such as rectangles and wedges.
Related article: Rising Three Methods Pattern (How to Trade & Examples)
Falling Three Methods
A “falling three methods” is a bearish continuation candlestick pattern. It is the opposite of the rising three methods.
A falling three methods pattern appears in the middle of a downtrend. It starts with a relatively large red candle followed by multiple spinning tops that move horizontally or have a tiny upward slope. After the closing of multiple small candles and a large bearish candle, the price is expected to continue falling.
Related article: Falling Three Methods Pattern (How to Trade & Examples)
