Free Stock Picks, Swing Trading, Daily Stock Picks, Stocks to Watch Today, Stock Market Education » bullish rectangle http://www.dojitrading.com Learn how to trade stocks & free daily stock picks Fri, 10 Feb 2012 21:02:04 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 What are Rectangles? http://www.dojitrading.com/2009/09/what-are-rectangles/ http://www.dojitrading.com/2009/09/what-are-rectangles/#comments Fri, 25 Sep 2009 02:22:29 +0000 Tim Huang http://www.dojitrading.com/?p=1835 A rectangle, also known as a trading range or a congestion area, represents a pause in a trend as prices move sideways. Like other continuation patterns, after the rectangle has been formed, prices continue in the direction of the market trend that preceded its formation. Below is an example:

bullish rectangle

Rectangles are usually continuation patterns but you still have to be alert for signals of a reversal pattern.

Rectangles enable traders to trade the swings within the pattern, buying dips and selling rallies. They take about 1-3 months to form and complete.

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