A bullish continuation patterns occurs when a stock in an uptrend consolidates for sometime before continuing on it's uptrend. Below are some very recognizable patterns .

Ascending Triangle.

The ascending triangle is an easily recognizable pattern that offers very good performance. It's duration is about 3 months are less. Trading volume generally diminishes as the pattern forms. The minimum target price after a breakout occurs is the height of the pattern at the beginning of the formation added to the horizontal trendline.

Symmetrical Triangle - In an Uptrend.

A symmetrical triangle can breakout in either direction. If it breaks out to the downside, it might be a reversal pattern. Since this section is about bullish continuation patterns, we'll consider a breakout to the upside. To compute the predicted target price, subtract the highest price from the lowest price in the pattern. Take this result and add it to the highest price in the pattern. This is the predicted target price. A throwback occurs more than half the time. Trading volume in this pattern diminishes before a breakout. The duration of this pattern is usually about 3 months or less.

Rectangular Top - In an Uptrend.

A rectangle top is a great pattern to trade. It is very easy to recognize and offers excellent performance. A breakout can occur in either direction but a breakout to the upside usually offers better performance. Trading volume generally decreases during this consolidation period. To calculate the minimum price move subtract the upper trendline from the lower trendline. This is the formation height. Take the formation height and add it to the upper trendline to give you the minimum expected move.

Flag - In an Uptrend.

This is a short term consolidation pattern. The duration of this pattern is only from a few days to a few weeks. It should never be more. As with most consolidation patterns, volume usually diminishes as the pattern is forming. To calculate the predicted target price, take the difference between the formation and start of the uptrend. Prices should move at least this amount above the formation. As in every pattern, always wait for a breakout first.

Pennant - In an Uptrend.

This is a short term consolidation pattern much like the flag pattern. The duration of this pattern is only from a few days to a few weeks. It should never be more. As with most consolidation patterns, volume usually diminishes as the pattern is forming. To calculate the predicted target price, take the difference between the formation and start of the uptrend. Prices should move at least this amount above the formation. As in every pattern, always wait for a breakout first.

Rounding Top.

A rounding top is a long-term pattern with a duration of 6 months or more. Stock prices curve around forming a dome. Trading volume is heavier on the sides of the dome. A breakout is defined when prices eventually close above the highest price on the dome. The target price once a breakout occurs is as follows. Subtract the right dome low from the formations high. And this result to the high to get the target price.

Broadening Formation - Right-Angled Ascending.

This is an interesting pattern that typically forms over a period of three months or less. At first it appears very negative. However, if prices breakout to the upside, gains are usually very good. The trading volume is usually irregular. To calculate the predicted target price, calculate the difference between the horizontal top line and the lowest low in the formation. Add this difference to the horizontal top line and you get the predicted target price.

Cup with Handle.

A Cup with Handle pattern is usually forms in 3 months or less. The difference between this pattern and Rounding Bottom pattern is that this pattern forms after a stock has been in an uptrend for some time.