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Details: ht
Understanding the Bullish Rectangle Pattern
The Bullish Rectangle Pattern is quite a powerful continuation signal in technical analysis. It shows up during uptrends. After some sideways movement, prices usually keep climbing.
Pattern Characteristics
Previous Trend: Appears after a clear uptrend
Two Parallel Horizontal Lines:
Volume Profile:
How It Forms
Price climbs, then pauses. Bulls and bears reach a kind of standoff. The price bounces between boundaries. Then boom! It pushes through the top with heavy volume.
Trading It
Market Stuff
It seems the 2025 research is pretty impressive - these patterns work about 85% of the time in bull markets. Not bad! Traders see around 51% profit when they spot these correctly. Works in stocks, forex, crypto... pretty much everywhere.
Things to Watch
Check if breakouts stick through closing prices. Volume matters.
Watch out for fake breakouts. They're tricky.
Maybe use RSI or MACD too? Just a thought.
The pattern is basically a breather. Bulls getting ready for another push. Kind of surprising how reliable it can be for technical traders.