A continuation is which a stock price continues to move in the same direction as it was moving to start with. This is the opposite of a reversal.
For example, the Gap reversal alerts always start with a gap in one direction or the other. If the stock continues to move in the same direction, before turning around, that is called a gap continuation. The amount that the stock moved between after the open, before reversing, is the size of the gap continuation.
A continuation pattern is a stock pattern where the price is expected to continue in the same direction. For example, in a checkmark pattern, the stock has gone up a significant way before we report the alert. The most common interpretation of this pattern is that the stock will continue in the same direction, so the chart will eventually look like a check mark. Because the terms continuation pattern and reversal pattern are sometimes confusing, we always color our alert icons based on the most common interpretation of the alert.
We offer the following alert types which are related to this topic. Click on the icon for a detailed description of the alert, or click on the example link for additional samples of each type of alert.