Trend Continuation

Definition ∞ Trend continuation in financial markets, including cryptocurrency, describes the scenario where an established price movement, either upward or downward, persists over a sustained period. This concept suggests that once a trend is in motion, it is more likely to continue in the same direction than to reverse. Analysts identify continuation patterns using various technical indicators and chart formations. It reflects persistent market sentiment.
Context ∞ News reports frequently discuss trend continuation when analyzing long-term market movements and predicting future price trajectories for digital assets. Traders and investors use this concept to align their strategies with prevailing market forces. Debates often focus on identifying the strength and validity of a continuing trend amidst market noise and short-term fluctuations. Understanding trend continuation is essential for making informed decisions in volatile crypto markets.