Definition
A continuation pattern is a price chart formation that indicates a high probability the existing trend will continue once the pattern is completed. It appears during a pause in price movement, where the market temporarily consolidates before potentially moving again in the same direction. In a strong Bull Market, continuation patterns often form as the price takes short breaks within a larger upward move. These patterns are used in technical analysis to interpret whether a short-term pause is likely part of a longer Macro Trend rather than a full reversal.
Context and Usage
In crypto trading, continuation patterns are treated as visual signals that the dominant buying or selling pressure remains intact despite short-term sideways or choppy price action. They are typically evaluated within the broader context of the Macro Trend, helping traders distinguish between a simple pause and a potential change in direction. When observed during a Bull Market, continuation patterns are often interpreted as temporary consolidations within an ongoing upward trend, rather than signs of weakness. Their meaning depends heavily on the surrounding price structure and the timeframe on which they appear.