Having finished discussing the reverse candlestick patterns, we’re now moving on to continuation candlestick patterns. In contrast to reverse candlestick patterns, these patterns indicate the strength of the current market trend and they might be hinting towards a possible continuation of a given trend. When learning about these patterns, please keep in mind that most of these patterns require a concrete confirmation in the form of a subsequent candlestick.
The most popular and widely recognized continuation candlestick patterns are:
This type of candlestick typically does not have any shadows coming out of either end. That means that the buyers or sellers (depending on whether the candlestick is bullish or bearish) have a stronghold of the market and that no resistance is being shown in the opposite direction. This is typically a strong indicator of a prevailing and continuous market trend, but this might depend on your settings (whether the candles in your chart represent 1 minute, 1 hour or 1 day).
Here is an actual example of the Marubozu pattern occurring in a realistic situation:
Hopefully, this article has helped you recognize and work with the Marubozu continuation pattern. Keep your eyes peeled for our next article, where we will move to Three White Soldiers and Three White Crows, which is another very popular and frequent continuation candlestick pattern that will reinforce your trading arsenal even further.
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