๐ Bullish Continuation Pattern (Consolidation Before Breakout)
This pattern forms when the market is already in an uptrend (bullish), but takes a short pause moving sideways or horizontally for a while and then breaks out again to the upside.
How It Appears on the Chart:
๐ผ Bullish Momentum
Price moves strongly upward, showing that buyers are in control of the market.
โธ๏ธ Consolidation Phase
For a short time, the price moves in a tight range neither going up nor down.
This is where the market is in "rest mode", and both buyers and sellers are waiting for the next move.
During This Phase:
Small candles appear
Volume is low
Volatility is low
The market is undecided
waiting to make a move
๐ Then Comes the Breakout:
When buying pressure builds up again, price breaks out above the range, and the uptrend continues.
This means the trend never reversed, it simply paused to gather strength.
This pattern is commonly known as a bullish flag or bullish pennant.
โ When to Enter a Trade?
Wait for the breakout, entering too early can be risky
Look for a confirmation candle, a strong bullish candle that confirms the breakout
Place your entry just after confirmation
Set your stop loss just below the consolidation zone to manage risk properly.
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