Rectangles

Rectangles
It is a process of pattern trading depending on the continuation pattern. The continuation pattern consists of descending, ascending triangles, flags, wedges, symmetrical Pennants and Triangles. All these are important technical patterns that lead to the continuance of a current trend.Continuance patterns are described as a strong trading device as they generally result in very low risk dealing opportunities. This pattern generally reflects the consolidation time, generally for the duration of 4 to 6 weeks. This pattern generally features properly defined support and level of resistance, which are differentiated by horizontal lines. If the rectangle pattern continues to move, with a breakout taking place at the upside portion, the rectangle is known as bullish. This trend reverses with the occurrence of breakout on the downtrend.