The 2 Types of Rectangle Patterns

  • The narrow range rectangle pattern
  • The wide range rectangle pattern

Rectangle Pattern Psychology

Rectangle Pattern Trading Strategies

  1. Narrow Range: Accumulation + Breakout
  2. Narrow Range: Trend Pullback + Breakout
  3. Wide Range: Buy Low, Sell High
  4. Wide Range: Breakout + Pullback

Rectangle Pattern Trading Strategy #1

Rectangle Pattern Trading Strategy #2

Rectangle Pattern Trading Strategy #3

Rectangle Pattern Trading Strategy #4

Profit Target for Rectangle Pattern

Tips from the Trading Desk

  1. Trade with the larger trend
  2. The wider the range, the greater the uncertainty, and the bigger the risk
  3. When in doubt, wait for a pullback after breakout
  4. The longer the pattern takes to form, the bigger the potential move after breakout
  5. The wider the range, the higher the chance of a change in trend

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Trading, travelling & teaching across 60+ countries. Over 15 years of professional experience, and featured on more than 20 occasions in the media.

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Spencer Li

Spencer Li

Trading, travelling & teaching across 60+ countries. Over 15 years of professional experience, and featured on more than 20 occasions in the media.

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