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Pattern Rectangle

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Pattern Rectangle

Postby david fx » Thu Sep 20, 2012 7:47 am

Pattern Rectangle is pattern formed because when prices bounded by parallel support and resistance. Where the price will override “test” support and resistance level several times before finally penetrating.

In the example image pattern rectangle (http://fxadd.com/pattern-rectangle/), we can clearly see that the above pairs is limited by two key price levels that align with each other. By doing so we have to wait until one of the new levels of translucency and then re-enter the market, you need to remember is when you see a rectangle: Think out of the box Environment (limits).

Bearish Rectangle In Pattern Rectangle
Where a bearish rectangle formed when prices consolidate for a while during the trend trend is decreasing. This happens because the seller may require a short break to catch his breath before the price falls lower.

In this example(http://fxadd.com/pattern-rectangle/), where the price break the bottom of the rectangle and kept swooping down. If we have the time and are just below the level of support, then we will get a lot of points.

Tip: Once the price falls below support, In the above example, pairs move beyond the target so that there will be an opportunity to get more Points.

Bullish Rectangle In Pattern Rectangle
Here’s another example of the rectangle, where the current bullish trend. After an uptrend, prices cease to consolidate a bit. Can you guess which direction the price next?

If your answer to the above, then you are correct.

You see how the price moves after penetrating the top of the rectangle. If we buy above resistance levels, we would have produced a lot of points. So this time review the Chart Pattern Rectangle, may add insight to recognize any movement that occurs on the forex.

Source:
http://fxadd.com/pattern-rectangle/
david fx
 
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Re: Pattern Rectangle

Postby Haley12 » Thu Sep 20, 2012 10:10 am

Thanks david fx to share a good article about "Pattern Rectangle". I was not well familiar with it. Can you suggest me how to utilize this opportunity?
http://www.ask-fx.com
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Haley12
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