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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)
-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)
-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)
-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)
-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)
