Continuation zones: rally and drop

Zones are classified by what preceded the base and what followed it. The first two types are continuation zones; that is, they appear in the middle of an existing trend and confirm its continuation rather than its reversal.

The shape

• Rally-Base-Rally — a demand zone in an uptrend: a rise, then a base, then another rise. It is a rest stop within the advance.
• Drop-Base-Drop — a supply zone in a downtrend: a fall, then a base, then another fall. It is a rest stop within the decline.