A bullish continuation pattern: a long green candle, a few small pullback candles held inside its range, then another long green candle.
The middle candles drift lower but stay within the first candle's high and low, showing a shallow, orderly pullback. The final candle closes above the first candle's high, resuming the trend.
It is essentially a bull-flag compressed into five candles, and it carries the same logic: the absence of aggressive selling during the pause is the bullish information.
The practical entry is the break of the first candle's high, with the stop below the lowest of the resting candles. That gives a tight, well-defined risk, which is why continuation patterns generally offer better risk-reward-ratio than reversal patterns even when both have similar hit rates.
Original diagrams for the ideas on this page. Illustrative, not real market data.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.
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