Continuous Patterns (Rectangle)
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11/20/2022




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The rectangle pattern is similar to the triple tops or triple bottoms pattern because it simplifies the explanation: assuming the original trend is an uptrend, when the triple tops are formed, they retrace until prices break through the base line goes down, but the rectangle is not like that. When there is a downturn after the 3rd peak, it appears that it has rebounded from the base line at the bottom (pictured), so it is starting to not look like triple tops. Think carefully after sprung up from the bottom Prices have continued to move up. Until it breaks through the resistance line And this suggests that rectangle is a continuation, not a reversal like triple tops, or some might say that rectangle is no different from a sideways movement, probably yes. Very correct But let me tell you that. Are you started to understand, right?


grade7-bullish-rectangle-before.png



grade7-bearish-rectangle-before.png



There are some observations To distinguish between triple tops or triple bottoms and rectangles is that triple tops or triple bottoms are formed with a somewhat wider channel than the rectangle"s channel. In other words, in the case of triple tops or triple bottoms, The up and down motion is more intense in the case of rectangles.



Happy If you understand the rectangle in the uptrend case then the downtrend rectangle should be easier for you to understand. Just change the observation point from the bottom point. Comes as the vertex instead as shown in the example image.




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