Continuation patterns refer to any pattern that indicates signs of price trend continuation. Price Movement: A flag pattern is initiated by a significant price movement of the flagpole, which can be bullish or bearish. Consolidation Area: In the flag part of the pattern, price consolidation is typically in the shape of a rectangle. Identify the trendlineCheck the pre-existing patterns on your chart – was there any difference in price before the continuation pattern? Part three of this series will cover the roles and types of triangles in continuation patterns and how to identify them.