Chart pattern of the day — the rectangle

 

The rectangle tends to be a reversal pattern. I love the pattern because its boundary lines are horizontal, meaning that a successful breakout also resolves the complete congestion zone.

The targeting is determined by projecting the height of the rectangle in the direction of the breakout. However, rectangles often run far beyond the standard measured targets.

 

 

Markets: $ZW_F, $COPN, $OJ_F, #rectangle

 

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