Bearish Rectangle Pattern | Trading Ranges | Forex Chart Patterns | IFCM
IFC Markets Online CFD Broker

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.
Build a shape in the terminal
Once opened Demo you will be supplied with educational materials and online support in your own language

Formation

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)
Start earning now in giant market
Trading is mostly about making Right Forecast.
world map

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,

Where:

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

Test your knowledge before trading

12 simple questions to help you decide
which account to choose

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.

Article Helpful

Was this article helpful?

NetTradeX You can trade CFD for free, by downloading our CFD Trading Platform NetTradeX. Download
Visit Educational Center You can study CFD trading more thoroughly and see CFD trading examples in the section How To Trade CFDs Visit Educational Center
Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger