CONTINUATION CHART PATTERNS: RECTANGLE CHART PATTERN
CONTINUATION CHART PATTERNS
RECTANGLE CHART PATTERN
Rectangle shape formed in the chart when the market is moving up and down between horizontal support and resistance levels. The market takes a long break from the trend move and it keeps moving up and down between the certain price level.
During a trend, when the price starts moving sideways forming a rectangle, another trending move is likely to occur once price eventually breaks out of the rectangle formation. This move is likely to be at least as big as the size of the rectangle. Rectangles could be bearish or bullish depending on the trend direction.
How to trade Rectangle?
You can take short term trades in the Rectangle pattern. If the market reaches the bottom support of the rectangle, you can place buy trade. If the market reaches the Top of the resistance, you can place a sell trade.
Wait for a breakout of the Rectangle pattern to enter into the trade.
Note: Always keep placing the trade depend on the trend. Example: If the market moving in an Uptrend, place only sell trade after breakout confirmed at the Bottom Support of the Rectangle.
How to confirm the breakout in trading? check here.
After a breakout, the distance of the first wave inside the rectangle should be your minimum take profit target.
RECTANGLE CHART PATTERN
Rectangle shape formed in the chart when the market is moving up and down between horizontal support and resistance levels. The market takes a long break from the trend move and it keeps moving up and down between the certain price level.
During a trend, when the price starts moving sideways forming a rectangle, another trending move is likely to occur once price eventually breaks out of the rectangle formation. This move is likely to be at least as big as the size of the rectangle. Rectangles could be bearish or bullish depending on the trend direction.
How to trade Rectangle?
You can take short term trades in the Rectangle pattern. If the market reaches the bottom support of the rectangle, you can place buy trade. If the market reaches the Top of the resistance, you can place a sell trade.
Wait for a breakout of the Rectangle pattern to enter into the trade.
Note: Always keep placing the trade depend on the trend. Example: If the market moving in an Uptrend, place only sell trade after breakout confirmed at the Bottom Support of the Rectangle.
How to confirm the breakout in trading? check here.
After a breakout, the distance of the first wave inside the rectangle should be your minimum take profit target.