What is a Continuation Candlestick Pattern? With Examples

A continuation candlestick pattern is a candlestick that follows the trend of the previous candle.

If we take a look at the example above, you can see we have a bullish engulfing candlestick. The candlestick after it is the continuation candlestick to the bullish trend as it went above the engulfing candlestick high.

Let’s take a look at a bearish continuation candlestick pattern example.

It’s the same as the bullish continuation but the inverse!

Let’s look at another example of a continuation candle pattern after a consolidation candlestick.

In the example above, after the red candlestick a consolidation candlestick is followed (grey).

Right after the consolidation candlestick we have a bullish reversal candlestick. Even though the first green candlestick, may look like a continuation pattern it’s not.

Remember that we need a clear direction (up or down) and for the following candlestick to follow up trend of the previous candlestick to call it a continuation pattern.

The image above, can also be in reverse and it would still follow the same rules.