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.