>>>>>>>>>> Todays Topic Is Rectangle Patterns <<<<<<<
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Bearish/Bullish Rectangle
A bearish rectangle chart pattern is a trading pattern that occurs on a chart, when prices move within a rectangular top and bottom range. This range is formed by two parallel, horizontal trend lines that act as support and resistance, respectively. After a period of consolidation, the price breaks out of the pattern in a downward direction, signaling that a continuation of the existing bearish trend is likely. The bearish rectangle chart pattern is considered a reliable signal of a bearish price trend and is often used by technical traders to make trading decisions.
A bullish rectangle chart pattern is a type of technical analysis pattern that signals a potential trend continuation and serves as a great trading opportunity. It is formed when price movements create two horizontal lines which intersect at two opposite ends, creating a “rectangle” shape. The price action appears to “consolidate” within the rectangle area and typically breaks out of this area in the direction of the ‘bullish’ sentiment. A bullish rectangle chart pattern is typically seen as a sign of strength and a likely indication that the trend is set to move upwards. To confirm a breakout, the price should close above the upper resistance line of the rectangle chart pattern. In short, a bullish rectangle chart pattern is an indication of an uptrend and can be used to spot potential trading opportunities.
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