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Rectangle Pattern (Bearish): Forex Chart Pattern

Bearish Rectangle Pattern

The rectangle graphical price pattern serves for existing trend confirmation. The bearish version is usually formed in a downtrend and signals the trend’s direction will prevail after its occurrence on the chart.
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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.

Rectangle Pattern(Bearish)
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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,


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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