Duration 4:30

Professional traders know it's time to range trade.

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Published 13 May 2022

Traders analyze bearish and bullish rectangles to see changes in trend to know when to trade stocks and cryptocurrencies. A bull trend is formed when demand exceeds supply, and a bear trend occurs when sellers outperform buyers. When bulls and bears hold unmoved, it results in the formation of a trading range. Sometimes, this leads to the formation of a rectangular pattern, which can also be described as a zone of consolidation or congestion. Rectangle pattern basics A rectangle is formed when an asset forms at least two comparable peaks and two bottoms that are nearly at the same level. Two parallel lines can be used to connect the high and low points, forming a rectangular line of resistance and support. bullish rectangle pattern As shown above, the asset is in an uptrend. But after the rally, some bulls took profits and this created the first reaction high. bearish rectangle pattern As shown in the example above, the asset is in a downtrend, but when the price reaches a level that traders consider undervalued, the dip buyers absorb the supply and form a reaction low. bullish rectangle pattern Bullish rectangular pattern. As shown above, the asset is in an uptrend. But after the rally, some bulls took profits and this created the first reaction high. After the price corrected, some of the downside buyers jumped and held the decline, which formed the first trough. bearish rectangle pattern Bearish rectangular pattern. As shown in the example above, the asset is in a downtrend, but when the price reaches a level that traders consider undervalued, the dip buyers absorb the supply and form a reaction low. bullish continuation rectangle pattern THETA was already in an uptrend before hitting resistance near $0.80 on September 30, 2020. THETA/USDT daily chart. To achieve the aim of the breakout target of the rectangular pattern, calculate the height of the rectangle. In the above case, the high is $0.25. LTC/USDT daily chart. The target after the breakdown of the bearish rectangle is calculated by subtracting the height of the rectangle from the breakdown point. Keywords: learn to trade,how to trade,forex trader,professional traders need to know,how to day trade,range trading,range trading strategies,how to enter a trade,how to trade ranges,how to trade forex,winning trader,professional trader,learn how to trade,end of day trader,what retail investors need to know when placing trades,how to position trade stocks,learn to day trade,how to use trading indicators to trade stocks,how to trade ranging market forex

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