So i was doing some reading and came across a pattern called a rectangle top and as i was reading i thought and seen it somewhere.
Characteristic: Discussion: Price trend Upward leading to the chart pattern. Shape Prices have flat tops and flat bottoms, crossing the pattern from side to side following two parallel trendlines. Trendlines Two near horizontal trendlines bound price action. Touches Price should touch one trendline at least three times and twice on the other trendline, using distinct peaks and valleys, but be flexible. Volume trend Trends downward 70% of the time. Breakout Upward 63% of the time.
(Source: thepatternsite.com)
Seen as this pair has broken out downwards, can we expect this to continue?
Let me know your thoughts.
Im still very new to trading and am just trying to learn. I do not claim to be an expert in anyway. Trade at your own risk
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An update: Just dont a fib retracement on the current impulsive move to the downside. The support turned resistance (middle blue line), sits at the 38.2% level- A KEY fib level. I think this backs up the idea of retracement to the 0.76557 level for better shorting entries.
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In addition the new level of support (bottom blue line) at 0.75279 sits perfectly at 38.2% fib extension line.
An update: Just dont a fib retracement on the current impulsive move to the downside. The support turned resistance (middle blue line), sits at the 38.2% level- A KEY fib level. I think this backs up the idea of retracement to the 0.76557 level for better shorting entries.