Rectangle

تم تحديثه
Price must break upper trendline which is resistance for the formation and then becomes support after price has crossed it..

This looks to be a rectangle with an inverse head and shoulder inside of it. You can tread it as either or. It is still a free country, last time i checked (o:

Stops are initially often placed at nid rectangle/subtract top from bottom then add to bottom = mid rectangle. I did not calculate mid rectangle (o:
Stops for inverse head and shoulders are placed below right or left shoulder.

Rectangle tops are considered a continuation pattern and usually break the way of the prior trend leading to the rectangle. I usually add 50% then 100% of rectangle width as my target. Rectangles can break to the downside just like a symmetric triangle. A throwback can occur after long entry level is met, then price may be sucked back in to the horizontal channel call a rectangle

Inverse H&S is considered a reversal pattern, so there must be a downtrend in place. This stock did not have a true downtrend before it ended up in a rectangle top, although it did get in a downtrend inside the rectangle.

An Inverse head and shoulders is the mirror image of a head and shoulders top..which is also a reversal pattern after an uptrend and can signal the end of the uptrend, at least temporarily.

Head and shoulder tops (Opposite) do not always go down as much as calculations would suggest in a bull market and many never even reach the neckine before returning to the prior uptrend. The momentum of a bull market is difficult to slow down..but in history, bull markets do finally end.

I do not think we will defy history and if we do enter a bear market, there will be a lot of us who have never been in an extended bear market. I will have to change my way of trading for sure!

We all should have a set of trading rules so we know what we are doing.. If we do not have a set of trading rules, we never really know what we are doing (o:

Not a recommendation

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Large effective Volume of Monday
Chart Patterns

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