Rectangle pattern also known as trading range, consolidation.We get multi-day, multi-week or multi-month consolidation where price move in range.
@Traderknight007 @caniravkaria @vivbajaj @VijayThk
A Thread on Rectangle Pattern:-
Rectangle pattern also known as trading range, consolidation.We get multi-day, multi-week or multi-month consolidation where price move in range.
The price should touch two point of resistance and two point of support parallelly to form rectangle pattern. Price move in range line "A " and line "B", line "A" known as resistance or supply, line "B" known as support or demand.
If you go through textbook method volume should dry up during the consolidation. But in my experience it is not necessary that volume should dry up there are time when volume get aggressive during consolidation.
Longer the duration of rectangle pattern generally more aggressive the breakout going to be.
ENTRY:- Entry will be at breakout candle high with 0.3% buffer.
More from Stockslearnings
I have explained the importance of meeasuring momentum of the trend.
U can guage the strength in the trend once u know how to measure the direction.
This trend strength is infact signals the trend continuity or the potetnial for sustanining the trend.
Thats great assurace to hav https://t.co/HanLvlXkjQ
U can guage the strength in the trend once u know how to measure the direction.
This trend strength is infact signals the trend continuity or the potetnial for sustanining the trend.
Thats great assurace to hav https://t.co/HanLvlXkjQ
Before making ur trade entry or even before making a bias of trend as either bullish or bearish, do u use any objective measures to define the trend based on price, volume and momentum?
— Aneesh Philomina Antony (@ProdigalTrader) May 15, 2021
Price will always go back and forth move no matter how strong the trend is.
1/4 pic.twitter.com/qqizh2JO3J
Crisp and wonderfully explained. Urge EVERYONE to read this 🙏🏻
Friends,
— Pankaj DP (@voPAtrader) May 8, 2021
I am planning to write Stock mkt related thread (/writeup) on..
WHY STUFF WORK?
E.g. Why prior Support acts as Resistance?
If u have such questions related to Data/ TA, DM me. If possible, I shall incorporate reasoning for that as well.....#learning #stocks