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Weekend Learning Thread : Rectangle or Range or Box Pattern

-The pattern is formed within a horizontal support line below and resistance line above.

-Minimum two touches on each side is required for the pattern to be valid.

-It can also be seen as a horizontal channel.

(1/7) Image
-As shown in the above image, shortfall is seen majority of the times which helps to identify the breakout side.

-For instance, the prices touched the resistance but couldn't come down to support line. This implies the sellers are weak and buyers are pushing the price up.

(2/7)
Best Pattern :

-More the price touches on the lines, better the breakout will be

-Volume decreasing throughout the pattern

-High Volume on breakout

-Pullbacks and throwbacks preferable

(3/7)
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