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- Bearish Rectangle
Rectangle Pattern (Bearish): Forex Chart Pattern
Bearish Rectangle Pattern
Formation
The rectangle pattern is characterized by two parallel trendlines representing support and resistance levels respectively connecting the most recent lows and highs of the price, holding a certain bunch of price fluctuations within.
Interpretation of Bearish Rectangle
The price falling below the support line (plus certain deviation is possible) is considered a sell signal as the level at which the asset has been repeatedly bought is finally overcome.
Target price
Following a bearish rectangle pattern formation the price is generally believed to fall at least to its target level, calculated as follows:
T = S – H, Where:T – target price;
S – support level (pattern’s low);
H – pattern’s height (distance between support and resistance).
How to use Bearish Rectangle on NetTradeX trading platform
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How to use Bearish Rectangle in trading platform
You can see the graphical object on the price chart by downloading one of the trading terminals offered by IFC Markets.
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