Rectangle Chart Pattern - Rectangle Pattern and Chart analysis

A rectangle chart pattern is characterized as a short-term horizontal channel, and it represents a trading range and indecision area that usually resolves in the direction of the main trend. Chart analysis usually considers the rectangle pattern as a continuation formation, but it can also mark significant top and bottom. The rectangle pattern within a younger parent trend has more chances to mark a continuation. To estimate the maturity of the parent trend, consult technical indicators. Volume should increase during breakout, but in contrast with other continuation patterns, the rectangle does not inherit standard volume behavior. After breakout, the rectangle pattern resistance may turn into potential support and vice versa.
Tips:
# 1 As a continuation pattern, the rectangle pattern usually appears within a young trend characterized by neutral long-term indicators and overbought/oversold daily indicators. The pattern resets short-term indicators to neutral and then continues movement in the parent's direction.
# 2 As a reversal formation, the pattern appears in a mature trend characterized by overbought/oversold indicators on long and short time frames. This situation usually generates divergence on weekly indicators.
# 3 For the best results, the rectangle chart pattern should be considered together with other technical analysis signals, chart analysis, and technical trading techniques.
Estimated target: the higher level parent's support/resistance line.

Stock Chart Patterns.

The price chart is the result of the activity of all market participants. It reflects periods of high expectations, greed and fear. As with most emotional human activities, it presents different patterns. Chart analysis and pattern recognition provide useful information for technical analysis, trend analysis, and market timing signals for technical trading. Trendlines and chart patterns can be analyzed in different time frames: from intraday, daily and weekly frames, up to multi-year patterns. It is the best practice to analyze patterns in conjunction with other technical indicators. Each price pattern is formed by several smaller sub waves. At least 3 – 4 subwaves are required to perform a reliable pattern screening. We use a minimal required number of sub waves for an earlier pattern recognition screener. On the other hand, a pattern formed with more subwaves is more reliable.

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Index column presents the index name.
Tips:
– Move the cursor over the index name to see the index symbol.
– Click on the index name to redirect to the technical signals details page.

Symbol column presents a list of symbols that match the selected criteria.
Tips:
– Move the cursor over the symbol to see the full name.
– Click on the symbol to redirect to the technical signals details page.

Weekly Column represents a stock close price at the last business day
of the previos week and weekly price change.

GFI columns present daily and weekly Greed/Fear Indicator (GFI). The Greed/Fear Indicator is TheGreedyTrader.com proprietary stochastic market sentiment indicator that fluctuates from 0% to 100%. A stock with GFI higher than 70% indicates a high greed and low fear market sentiments and is considered to be an overbought signal. Lower than 30% GFI indicates high fear and low greed market sentiments and it is considered to be an oversold signal.
Tips:
– Green color presents an oversold signal
– Bold green font presents strong oversold signal
– Red color presents an overbought signal
– Bold red font presents a strong overbought signal
– Click on the column header to sort records in ascending/descending order (subscribers only).

Oscillators columns – "Daily" and "Weekly" columns show technical indicators alerts icon. An icon has three vertical bars. From left to right they represent Relative Strength Index (RSI), Williams' Percentage Range (W%R) and Lane's Stochastic (%D–Slow).
Tips:
– Short yellow bar represents neutral (no alerts) indicator
– Medium green bar represents oversold alert
– High green bar represents strong oversold alert
– Medium red bar represents overbought alert
– High red bar represents strong overbought alert
– An icon with a red border represents a bearish divergence alert and an icon with a green border represents bullish divergence.
– To see the detailed information about the technical indicators and divergence, place the cursor over an icon. A tool tip popup window will come up.
– Click on the icon to see detailed technical indicators and divergence information in a separate window.
– Click on the column header to sort records in ascending/descending order (subscribers only).

Trend Analysis columns – daily, weekly, monthly, quarterly, and yearly trends details are presented by trend alert icons. An icon indicates trend pattern and status (valid, testing trend support, testing trend resistance, broken trend support, broken trend resistance).
Tips:
– To see detailed trend analysis information, place the cursor over an icon. A tool tip popup window will come up.
– Click on the icon to see detailed trend analysis information in a separate popup window.
– Click on the column header to sort records in ascending/descending order (subscribers only).

Ranking columns – "Sector" and "Industry" columns represent Sector and Industry overbought/oversold Rank. Sectors are ranked from 1 to 10 (the higher number represents more overbought sector). The industries are ranked from 1 to 216 (the higher number represents more overbought industry). The rank can be used for sector and industry rotation.
Tips:
– Move the cursor over the rank to see the Sector/Industry name as a tool tip.
– Click on the "Sector" rank to see the Sector overbought/oversold indicators by Industry.
– Click on the "Industry" rank to see the detailed technical indicators for Industry members.
– Click on the column header to sort records in ascending/descending order (subscribers only).

Technical Signals column displays the number of advanced weekly technical signals for each symbol. An advanced technical screener represents more than 30 signals.
Tips:
– Click on the number-link to see the list of the technical signals for the selected symbol.

Technical Rank column represents advanced technical alerts: downtrend exhaustion, downtrend broken resistance, uptrend support, uptrend exhaustion, uptrend broken support, and downtrend resistance. Stars (0 to 5) represent an alert rank. The higher rank indicates that more technical indicators confirm the signal.
Tips:
– Move the cursor over an icon to see the alert name.
– Click on the icon to redirect to the technical signals details page.
– Click on the column header to sort records in ascending/descending order (subscribers only).

Candlesticks Column shows the weekly list of the Candlestick patterns.
Tips:
– Move the cursor over an icon to see the Candlestick pattern names and dates.
– Click on the icon to see the candlestick chart popup window with the weekly list of Candlestick patterns.
– Click on the column header to sort records in ascending/descending order (subscribers only).

Watch List Column: click on the "+" sign to add symbol to your watch list. You can view your "Watch List" technical analysis by selecting "Watch List" menu item under the "Analysis" menu. You should be logged in to use the "Watch List" functionality.

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Rectangle Chart Pattern - Rectangle Pattern and Chart analysis

Stock Chart Patterns.