Vantage FX (www.vantagefx.co.uk) explore different types of Chart Patterns including both Continuation Patterns and Reversal Patterns.
Continuation Patterns & Reversal Patterns
Continuation Patterns are important to a scalpers strategy and can be identified in the three phases of market activity - uptrend, downtrend and sideways. A Continuation Pattern could potentially indicate whether the current market activity will be maintained and continue in its cycle. These patterns apply to their time frame only, eg. a one-minute Continuation Pattern will not impact a trend built over days.
Reversal Patterns are paramount to a contrarian traders strategy. They may indicate when a market is entering a new phase. By strict definition they are an indication that the market will potentially do the opposite of the current market activities, although this is of course never a certainty.