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- Forex Technical Analysis
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- Bullish Rectangle
Rectangle Pattern (Bullish): Forex Chart Pattern
Rectangle Pattern Definition
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.
Interpretation of Bullish Rectangle
The price climbing above the resistance line (plus certain deviation is possible) is considered a buy signal as the level at which the asset has been repeatedly sold is finally overcome.
Target price
Following a bullish rectangle pattern formation the price is generally believed to rise at least to its target level, calculated as follows:
T = R + H, Where:T – target price;
R – resistance level (pattern’s top);
H – pattern’s height (distance between support and resistance).
How to use Bullish Rectangle on NetTradeX trading platform
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How to use Bullish 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.