Continuation Patterns

Continuation Patterns finds consolidations that break out. Triangles and wedges are read from the recent swing highs and lows, drawn as two converging trendlines. Flags and pennants are a sharp move, the pole, followed by a tight pause that breaks in the pole's direction.

It carries three detectors in one script, each with its own toggle, and all three are on by default. Each pattern on its own is rare, so together they still draw only a handful of objects. A confirmed pattern is drawn once with its lines, a label and a marker, and is not redrawn afterwards.

Continuation Patterns combines 3 tools in one script. Each one has its own switch in the settings.

• Triangles. Ascending, descending and symmetric triangles, drawn as converging support and resistance through the recent swings.
• Wedges. Rising and falling wedges, two trendlines sloping the same way and narrowing.
• Flags/Pennants. A sharp impulse measured in multiples of the average true range, followed by a tight consolidation that breaks in the impulse's direction.

• Ascending and descending triangles. A flat top over rising lows (ascending) or a flat bottom under falling highs (descending). The flat side is the level traders watch for the break.
• Symmetric triangles. Both sides converge. The pattern is neutral until price breaks one side.
• Rising and falling wedges. Both lines slope the same way and narrow. A rising wedge is coloured as bearish and a falling wedge as bullish, the classic reading.
• Flags and pennants. A strong pole followed by a shallow pause. A break of the pause in the pole's direction is read as the move continuing.

Components

Structure

Settings

Triangles

Wedges

Flags/Pennants

Display

Colours

Alerts: ascending_triangle, descending_triangle, symmetric_triangle, rising_wedge, falling_wedge, bull_flag, bear_flag.

Triangles and wedges both look at the most recent swing highs and lows, at least two touches per side by default. The script judges the slope of each side against the market's average true range, so a side that barely moves counts as flat. The combination of flat, rising and falling sides decides which pattern it is.

Flags start from a pole, a move of at least a set number of average true ranges within a limited number of bars. The consolidation after it must stay shallow and short enough; if it gets too deep or too long, the search starts again.

With Require Break on, which is the default, a pattern only counts once a bar closes through its boundary, and that is when it is drawn and its alert fires. Turn it off to see patterns as they complete, before any breakout.

• Swing lag. Triangles and wedges use confirmed swings, so the latest touch is only known Swing Length bars after it happened.
• Confirmation comes late by design. With Require Break on, nothing is drawn until the close through the boundary. The pattern is visible on the chart only after the move has started.
• Pattern definitions are strict. A shape that looks like a triangle by eye may not pass the slope and touch rules, and some charts show nothing for long stretches.
• Breakouts fail. A confirmed break can reverse straight back into the pattern. The script does not track what happens after confirmation.
• Wedge direction is a convention. Rising wedges are labelled bearish and falling wedges bullish. That is the textbook reading, not a certainty.

Premium scripts are a one-time purchase in the Altrady marketplace and need a paid Altrady plan to run.

• Reversal Patterns. Head and shoulders, double and triple tops and bottoms, and the Quasimodo, found from swings and confirmed by a close through the neckline.
• Harmonic Patterns. Gartley, Bat, Butterfly and Crab harmonics and the ABCD measured move, found automatically from swing pivots with the potential reversal zone at D.
• Divergence. Regular and hidden divergences between price and an oscillator at swing pivots, marked on the chart with a line between the two pivots.
• Confluence Scorer. A score from 0 to 1 for how many of six signals agree on direction, covering trend, momentum, volume, support and resistance, structure and displacement.