Chart pattern of the day — the rectangle

 

The rectangle tends to be a reversal pattern. I love the pattern because its boundary lines are horizontal, meaning that a successful breakout also resolves the complete congestion zone.

The targeting is determined by projecting the height of the rectangle in the direction of the breakout. However, rectangles often run far beyond the standard measured targets.

 

 

Markets: $ZW_F, $COPN, $OJ_F, #rectangle

 

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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