# Figures of the trend continuation

At the technical analysis there are graphic figures, confirming the running trend. These figures are known as figures of continuation. They reflect the relatively short period of consolidation. Breaks, at these figures, are done in the direction of the previous trend movement.

## The most important figures of continuation are:

• Flags
• Streamers
• Triangles
• Cotters
• Rectangles

### Flags

The flags contain information about the direction of the price movement and aim. This figure reflects the short period of consolidation in the limits of a steady and steep rising trend. The figure of consolidation is limited by the lines of resistance and support, which are parallel or slightly approaching each other, forming a figure resembling a flag (parallelogram), inclined as a rule of a side, opposite to the inclination of the running trend or situated horizontally. The steep line of the preceding trend resembles a flagpole.
If the preceding trend appears as a falling figure, it is called “Bear flag” . The line of the trend is slightly inclined downwards. A flagpole is the segment AB. The period of consolidation has a place, when the price hesitates between the support BE and the resistance CD. When the aim moves through the line of support at point E, the trend renews its falling, aiming the level of a point, measured from point E. The distance from that point to the aim is equal to the length of the flagpole AB, measured from the break point of the line of support BE. Based on the graphics prices, the height of the flagpole is equal to the following: 140.00 – 120.00 = 20.000 points. When there is a break of the level of the price 125.00, the aim is situated at level 125.00 – 20.00 = 105.00.

### STREAMERS

The streamers are similar to the flags. The only difference is that at the formation of a streamer, the lines of support and resistance significantly come nearer. If the preceding trend is “Bull”, then the graphics figure is called “Bull streamer” . The figure CD reflects the consolidation. At market break at the line of resistance BD, an aim of the price is the level of point E. The distance to the price aim DE is equal to the flagpole AB. This distance is measured by the break point. Based on the prices at figure 6.23, the height of the streamer flagpole is equal to: 1.5500 – 1.4500 = 0.1000 points. At break of the resistance line at level of the price 1.5200, the aim is situated at level 1.5200 + 0.1000 = 1.6200.
If the preceding trend is falling, the figure is called “Bear streamer” . On the figure, the segment AB is a flagpole. The figure CBD reflects the consolidation. AT market break at the line of resistance B, an aim of the price is the level of point E. The distance to the price aim E is equal to the length of the flagpole AB.
Based on the prices at the graffic, the height of the streamer flagpole is equal to: 139.00 – 119.00 = 20.000 point. At a break at the line of support at level of the price 120.00, the aim is situated at level 120.00 – 20.000 = 100.00.
A real example of a “bear streamer” is showed on the picture

### TRIANGLES

The triangles could be considered as flags without a flagpole. There are four types of triangles – symmetric, rising, falling and widening. The symmetric triangle consists of symmetrically congruent lines of resistance and support, built as a minimum through four points . The symmetric congruence of these lines is a reflection of the existing equilibrium between the demanding and supply at the currency market. Consequently, a break could happen from each side. In case of Bull symmetric triangle, the break will take place most probably in the direction of the preceding trend.
As it is showed , the congruent lines are symmetric. The falling line of resistance is built at the points B, D, F. the rising line of support passes through the points A, C, E, G. the aim of the price could be located either to distance HH’ from the break point H, equal to the base of the triangle BB’, or to the point of intersection of the line BI (parallel to the line of support AG) with the line of the price GI. The trade volume, at the end of the triangle formation, significantly drops, signalizing for market indefiniteness, but the break is accompanied with a volume growth.
Leading out of the prices of graphic 6.26 the purpose of the price is either equal to 1.5500, either a little bit higher than 1.5500 placing itself on the level of crossed point of the line parallel with the level of the support with the line of the price after the breakaway.
The ascending triangle is made by the horizontal line of the resistance and the ascending line of the support. This figure reflects the situation when the demand is stronger than the supply. This breakaway is situated up when purpose is the level of the price detected on distance equal to the base of the triangle from the point of the breakaway. As it’s seen on graphic 6.28 the line of the resistance passing through points A, C and E is horizontal. The meeting with the line of support build through points B, D, and F is inclined up. The purpose of the price is located on distance GG’ from the point of breakaway G equal to the base of the triangle AA’.
Leading out of the facts the purpose of the price is equal to 106.00 or the width of the base 105.00 – 103.00 = 2.00 added to the level of the breakaway 104.00. The trade capacity according to the making of the triangle is lowing down all the time but rises extremely when there is a breakaway.
Descending triangle is mirrored image of the ascending. It is made by the horizontal line of support and the descending line of the resistance. This figure shows the state of the market when the supply exceed the demand.
The breakaway of the price is expected down. The analysis of the descending triangle gives opportunity to the purpose of the price to be defined which is located on distance equal to the base of the triangle from the breakaway. As it’s seen on the graphic the line of support built through points A, C, E and G is horizontal. The meeting with it line of resistance passing through points B, D, F and H is pointed down. The purpose of the price is located on distance equal to the width of the base AA’, remote from the point of breakaway I on the line IF. Leading out of graphic 6.29 the purpose of the price is equal to 1.3000.
The trade capacity reaching the top of the triangle is lowing down but during the breakaway rises extremely.
The expanding triangle is mirrored image of every one of the described usual triangles which to the line of the previous trend is applied not the base of the triangle but it’s top. The changing of the trade capacity happens respectively – the capacity rises according to the making of the expanding triangle. As it’s seen on graphic 6.30 the line of the support passing through points B, D and F and the line of the resistance passing through points A, C and E are set wide apart. The purpose of the price after the breakaway is level located on distance equal to the reason GG’ distant from the point of the breakaway G.
Leading out of the data of graphic 6.30 the purpose of the price is equal to 102.00 or the difference 101.00 – 100.00 = 1.000 added to 101.00.

### Wedges

The wedge is close relative to the triangle and the streamer. It’s close to them either by form either by the time of forming but from point of view of the form and the analysis it reminds to streamer without flagstaff. The wedge differs with remarkable slope. The breakaway come in direction opposite to its slope but matches the direction of the previous trend. According to the trend the wedge can be rising l and descending. The purpose of the price can’t be determined on this figure.

### Rectangles

Also known as trade row the rectangle reflects the period of consolidation of the market.
After its breakaway the price of the currency possibly will continue the previous trend. Its disturbing can bring to stage of continuing of the trend to its unfolding. This line is easily recognized and can be examine as a small side trend.
When rising trend spring up and breakaway in its price the rectangle is called “bull”. Purpose of the price is the level from the point of the breakaway of the height of the rectangle. As it’s shown on graphic 6.32 the movement of the price is between horizontal lines of resistance and support. The real breakaway in period of consolidation can happen through every side of the rectangle. The purpose of the price lies on level G, stayed from the point of breakaway H on distance GH, equal to the height of the figure G’H. Leading out of the data shown on graphic 6.32, purpose is the level 1.6200.
If there is consolidation of the falling trend and it’s continue after the breakaway, the rectangle is called “bear”. Leading out of the data of this graphic the purpose of the price after the breakaway will be equal to 100.00