Rectanglepatterns
Bitcoin (BTC/USD) 4H Chart Analysis – Professional BreakdownBitcoin (BTC/USD) 4H Chart – Detailed Professional Analysis
This chart presents a Rectangle Pattern, a common consolidation structure in technical analysis. The price has been oscillating between a well-defined resistance level near $88,000 - $89,000 and a support level around $80,000 - $81,000. This pattern suggests an upcoming breakout, with bearish continuation being the most probable scenario.
Understanding the Rectangle Pattern
A rectangle pattern forms when price moves sideways, trapped between two horizontal levels. Traders watch for a breakout in either direction to determine the next trend. In this case, Bitcoin has tested the resistance multiple times but failed to break above, indicating strong selling pressure. Meanwhile, support has been retested several times, which weakens its strength over time.
A bearish breakdown is likely because:
Buyers appear unable to push past resistance, showing exhaustion.
Support has been tested multiple times, which increases the chance of a breakdown.
The dotted black trendline is now being tested, and a break below it would further confirm bearish momentum.
Trade Setup for a Breakdown
A short trade becomes valid only if Bitcoin breaks below the $81,000 - $82,000 support zone with strong momentum. The price must close below this level to confirm the move.
How to Enter the Trade?
Look for a strong bearish candle close below the $81,000 - $82,000 range.
If Bitcoin retests this broken support (now acting as resistance), this can be a secondary short entry point.
Once confirmation is seen, open a short position.
Stop Loss Placement
To protect against false breakouts, a stop loss should be set above the $88,457 resistance zone. If the price moves back into the rectangle and surpasses this level, it means the bearish setup is no longer valid.
Profit Target and Trade Expectation
The expected take profit target is $73,541. This is calculated using the measured move projection, meaning the height of the rectangle is subtracted from the breakdown point. If Bitcoin reaches this level, the trade will have successfully captured the bearish momentum.
Market Psychology Behind This Move
The repeated failure to break above resistance ($88,000 - $89,000) signals weak buying interest. Buyers have been stepping in at support, but each retest of the $80,000 - $81,000 zone makes it more vulnerable.
Once support finally breaks, several factors will accelerate the move:
Long positions will be forced to sell, increasing selling pressure.
Breakout traders will enter new short positions, pushing price further down.
Liquidity below support will be triggered, causing Bitcoin to fall sharply toward the $73,541 target.
Invalidation Scenario (Bullish Case)
If Bitcoin breaks above $88,000 - $89,000 and holds, the bearish setup becomes invalid. In that case:
The price would shift into a bullish continuation pattern.
Traders should avoid shorting and instead look for buying opportunities above resistance.
Final Thoughts
This is a high-probability bearish setup, but patience is key—wait for confirmation before entering.
Risk management is crucial : The stop loss at $88,457 ensures that losses are minimized if the market moves against the trade.
If Bitcoin remains inside the rectangle, traders can buy at support and sell at resistance until a breakout occurs.
Bitcoin (BTC/USD) Rectangle Pattern Breakdown – Bearish Move1. Overview of the Chart & Market Context
The chart provided represents Bitcoin (BTC/USD) on the 1-hour timeframe, published on TradingView. This analysis highlights the rectangle pattern formation, key support and resistance levels, and a potential short trade setup with defined risk management.
The market structure suggests a bearish outlook, as Bitcoin attempted to break above a resistance level but failed, leading to a sharp decline. The price action now indicates further downside movement, aligning with a rectangle pattern breakdown.
2. Rectangle Pattern Formation
What is a Rectangle Pattern?
A rectangle pattern is a consolidation phase where price moves sideways within a defined range, forming multiple touches at resistance and support before a breakout occurs. It can serve as a continuation or reversal pattern, depending on the breakout direction.
In this case, the pattern has resulted in a bearish breakout, indicating that sellers have taken control of the market.
Key Characteristics of This Rectangle Pattern:
The upper boundary (resistance) is at 88,333 USD, where price repeatedly failed to break higher.
The lower boundary (support) is at 78,044 USD, which acted as a strong floor but is now under pressure.
The price moved within this range for an extended period, showing a balanced battle between buyers and sellers.
A failed breakout at resistance, followed by a sharp rejection, signals a bearish reversal.
3. Breakdown of Key Levels & Market Structure
A. Resistance Level – 88,333 USD
This level has been tested multiple times, but price failed to hold above it.
The recent failed breakout led to a strong bearish rejection, confirming resistance.
The price action formed a bearish engulfing candlestick, adding to the bearish bias.
B. Support Level – 78,044 USD
This zone has previously provided multiple bounces, showing strong buying interest.
However, with the recent break below this level, it may now act as resistance.
If the price retests this area and fails to break above, it confirms a bearish continuation.
C. Price Rejection and Market Structure Shift
The formation of lower highs and lower lows signals a transition from consolidation to a downtrend.
The price broke out of the rectangle pattern to the downside, confirming a bearish breakout.
If the support at 78,044 USD fails, the price may continue dropping toward 73,678 USD.
4. Trade Setup & Execution Plan
🔹 Entry Strategy
A short position is initiated after the bearish rejection at resistance (88,333 USD).
The breakdown of the rectangle pattern strengthens the short setup.
The price may briefly retest the broken support (78,044 USD) before continuing downward.
🔹 Stop-Loss Placement
The stop-loss (SL) is placed above 88,333 USD, ensuring that if price moves against the trade, risk is minimized.
This protects against any unexpected bullish reversal.
🔹 Profit Targets (Take Profit - TP)
TP1: 78,044 USD (previous support level) – A conservative target.
TP2: 73,678 USD (deeper support) – If bearish momentum continues, this is the extended target.
Trade Component Details
Entry Short after rejection at 88,333 USD
Stop-Loss (SL) Above 88,333 USD
Take Profit 1 (TP1) 78,044 USD
Take Profit 2 (TP2) 73,678 USD
Confirmation Breakout & retest of support
Risk-Reward Ratio Favorable (defined SL & TP)
5. Expected Price Action and Market Behavior
🔻 Bearish Scenario (Most Likely Outcome)
The price will continue to fall towards TP1 (78,044 USD) due to selling pressure.
If 78,044 USD fails to hold, Bitcoin is likely to test the next major support level (73,678 USD).
The structure of lower highs and lower lows supports the downtrend.
🔺 Bullish Scenario (Invalidation of the Short Setup)
If Bitcoin breaks above 88,333 USD, the bearish outlook is invalidated.
This could signal a potential trend reversal or bullish breakout.
6. Technical Indicators Supporting the Analysis
Several technical indicators can be used to confirm the bearish outlook:
📉 RSI (Relative Strength Index):
If RSI is below 50, it confirms bearish momentum.
If RSI is oversold (<30), a temporary bounce may occur.
📉 Moving Averages:
If the 50-period MA crosses below the 200-period MA, it confirms a bearish trend.
If price is below both MAs, it strengthens the bearish setup.
📉 Volume Analysis:
A high selling volume during the breakdown indicates strong bearish conviction.
If volume spikes near support levels, a potential bounce could happen.
7. Summary of Key Findings
Pattern Identified: Rectangle pattern with a bearish breakout.
Market Structure: Price formed lower highs and lower lows, signaling a downtrend.
Trade Setup:
Short trade after rejection at 88,333 USD.
Stop-loss above 88,333 USD to manage risk.
Profit targets at 78,044 USD (TP1) and 73,678 USD (TP2).
Risk Management:
Clear stop-loss and take-profit levels ensure a controlled risk-to-reward ratio.
If price moves against the trade, the stop-loss prevents excessive losses.
Technical Indicators:
RSI, Moving Averages, and Volume Analysis confirm the bearish outlook.
8. Final Thoughts & Trading Plan Implementation
This analysis presents a high-probability bearish trade setup using the rectangle pattern breakdown strategy. With proper risk management, traders can execute this short trade with a structured plan.
🔹 Actionable Trading Plan:
Wait for price confirmation – If BTC retests the broken support (78,044 USD) and rejects, this strengthens the trade idea.
Execute the short trade – Once confirmation occurs, enter a short position.
Manage risk appropriately – Stick to the stop-loss above 88,333 USD.
Monitor price action – Adjust take-profit levels based on momentum and support breaks.
If the price invalidates the setup by breaking above resistance, it is crucial to exit the trade and re-evaluate the market conditions.
Conclusion:
This Bitcoin (BTC/USD) rectangle pattern breakdown analysis provides a clear bearish trade setup, supported by market structure, technical indicators, and price action. The well-defined entry, stop-loss, and take-profit levels ensure a structured risk-reward ratio, making this a viable short trade opportunity.
BTC/USD Bullish Breakout from Rectangle PatternOverview:
The chart represents Bitcoin's price action against the US Dollar on the 1-hour timeframe, highlighting a Rectangle Pattern Breakout with a well-structured trade setup. This analysis will break down the pattern, key levels, and possible trading scenarios.
1️⃣ Chart Pattern Breakdown – Rectangle Consolidation
The price has been moving within a rectangle pattern (range-bound movement), where Bitcoin found support at lower levels and faced resistance at the upper boundary.
Rectangle Pattern: A continuation/consolidation pattern where price fluctuates between horizontal resistance and support before breaking out.
Curve Formation: The price action within the rectangle also forms a rounding bottom, indicating a potential shift from bearish to bullish sentiment.
Breakout Confirmation: BTC has broken out from the rectangle, suggesting bullish momentum.
2️⃣ Key Technical Levels
🔹 Support Level ($84,110)
This zone has acted as a strong demand area, preventing the price from falling further.
Buyers consistently stepped in at this level, making it a significant psychological floor for Bitcoin.
🔹 Resistance Level ($86,850 - $87,000 Zone)
This level had previously rejected upward movements, leading to multiple price pullbacks.
After the breakout, this area is expected to act as a new support level upon a retest.
🔹 Target Price ($89,931 – Next Resistance Zone)
If the breakout sustains, the next key target for bulls is around $89,931, based on prior resistance zones and technical projections.
🔹 Stop Loss ($84,110 – Below Support Zone)
A stop loss below the support zone ensures risk management in case of a false breakout.
3️⃣ Trading Strategy & Execution
📌 Entry Point – After price confirms the breakout above the rectangle’s resistance. Traders should wait for:
A pullback and retest of the broken resistance, which should now act as support.
A strong bullish candle confirming continuation.
📌 Take Profit (TP) – $89,931, based on historical resistance levels and price projection from the rectangle range.
📌 Stop Loss (SL) – Placed at $84,110, below the rectangle’s previous support zone to minimize downside risk.
📌 Risk-to-Reward Ratio (RRR) – The setup offers a favorable RRR, meaning potential profits outweigh the risks.
4️⃣ Market Sentiment & Additional Factors
✔ Bullish Outlook – The breakout signals strong buying interest and potential upside continuation.
✔ Volume Confirmation – Traders should monitor volume spikes during the breakout to confirm institutional participation.
✔ Economic Events & News – External factors like macroeconomic data or Bitcoin-related news can impact price action.
Conclusion – BTC/USD Trading Setup
Pattern Identified: Rectangle Pattern Breakout
Current Trend: Bullish breakout from consolidation
Trade Type: Long position (Buy setup)
Key Levels:
✅ Support: $84,110
✅ Resistance: $86,850 - $87,000
✅ Target: $89,931
✅ Stop Loss: $84,110
🔥 Final Thought : Bitcoin has broken out of a key consolidation range, signaling a bullish move towards $89,931. Traders should wait for confirmation and manage risk accordingly! 🚀📈
Bitcoin (BTC/USD) Trading Analysis – Rectangle Pattern Breakdown1. Market Overview
The BTC/USD chart (1-hour timeframe) illustrates a trendline-supported uptrend that eventually transitioned into a rectangle consolidation pattern before breaking downward. The market displayed signs of buyer exhaustion near the resistance level, leading to a rectangle pattern breakdown, confirming a bearish shift.
This analysis will break down the chart structure, key technical levels, potential trade setups, and risk management strategies for traders looking to capitalize on this move.
2. Breakdown of the Chart Structure
A. Trendline Breakout & Shift in Market Sentiment
The chart initially exhibits an ascending trendline, acting as dynamic support for Bitcoin’s price.
As long as BTC/USD remained above this trendline, the uptrend was intact.
However, once the price broke below the trendline with strong bearish momentum, it signaled a significant shift in sentiment from bullish to bearish.
The breakdown of the trendline also coincided with the rectangle’s lower boundary breakdown, confirming bearish strength.
B. Rectangle Pattern Formation (Consolidation Phase)
The price oscillated between resistance at $88,500 and support at $86,000, forming a rectangle consolidation pattern.
This pattern reflects a period of market indecision where buyers and sellers are in equilibrium.
Multiple failed breakout attempts at resistance signaled strong seller dominance, leading to eventual support failure.
The rectangle breakdown suggests that bears have gained control and a downward move is likely.
C. Breakdown Confirmation & Target Projection
The price broke below the lower support of the rectangle ($86,000) with increased selling pressure.
The bearish breakout was confirmed by strong red candles with high volume, reinforcing the downside move.
The height of the rectangle pattern provides a measured move target of around $83,797, aligning with previous support.
The momentum remains bearish, and price is likely to test this level before any reversal attempt.
3. Trade Setup & Risk Management
A. Ideal Trade Entry
Entry Point: After the price retested the broken rectangle support at $86,000, which now acts as resistance.
Confirmation: The rejection from this resistance with a bearish engulfing candle confirmed further downside.
Bearish momentum indicators, such as RSI and MACD crossovers, further validated the setup.
B. Stop-Loss Placement (Risk Management Strategy)
Stop Loss: Placed above the previous resistance zone at $88,969 to protect against false breakouts.
Rationale: If price moves back into the rectangle and surpasses resistance, the bearish setup becomes invalid.
C. Take-Profit Target & Risk-to-Reward Ratio
Target: $83,797, based on the rectangle pattern height projection and key support levels.
Risk-to-Reward Ratio: The setup offers a favorable risk-to-reward ratio, ensuring that potential gains outweigh potential losses.
4. Market Sentiment & Future Outlook
A. Bearish Continuation Outlook
The trendline failure, rectangle breakdown, and bearish candlestick patterns all suggest a continuation of the downtrend.
If price fails to reclaim support-turned-resistance ($86,000), further downside is expected.
Increased selling volume confirms bearish control.
B. Possible Bullish Reversal Scenarios
If BTC/USD bounces strongly from the $83,797 target zone, it could indicate buyer accumulation and lead to a bullish recovery.
A move back above $86,000 would invalidate the bearish outlook.
5. Conclusion
This BTC/USD analysis highlights a bearish rectangle pattern breakdown, reinforced by a trendline break and strong resistance rejections at $88,500. The breakout target is $83,797, where traders should monitor price action for further bearish continuation or potential reversal signs.
Traders should approach with caution, set appropriate stop-loss levels, and follow volume trends for confirmation of further price movements.
Will AUDJPY continue bearish trend? [Short Setup]Bearish rectangle is form on 1HR chart and there is no divergences. It's likely to continue bearish trend.
🔹When to Enter?
Enter in the trade when it retest it pervious day low which is 193.157. And target it to swing low, keep SL above pervious day low.
🔹 How to Take Trade?
- Only risk 1% of your portfolio
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AXSUSDT Rectangle PatternAXSUSDT Breaks Out of Rectangle PatternAXSUSDT Technical Analysis update
AXSUSDT has formed a rectangle pattern at the bottom near its major yearly support level. The price has broken the rectangle pattern resistance on the daily chart, indicating a potential bullish move from the current level. The price is trading above the 100 and 200 EMAs on the daily chart, with a noticeable rise in volume in recent candles is also considered strongly bullish.
UNITDSPR Breakout, Long for IntradayUNITDSPR Breakout closing in 15 Min. chart, Rectangle/Flag & Pole pattern breakout.
Daily Trend is also upwards
Wait for the retracement then can go for long position.
Question : Why wait for retracement?
Ans : Already made 8 green candles, there is a high probability that a red candle can be formed only then we can see the intensity and exact seller price.
If sellers are strong then it can be a breakout fail or if buyers are strong then that red candle will be act like a small stoploss/better price place for Buyers.
Note: This is just an analysis wait for the price to confirm.
Disclaimer :
Always follow Risk to Reward, because this is the key to success in this business, no matter how much good a trade is looking, we never know the future.
Reliance Industries: Could be great momentum trade!!Reliance recently raised its mobile tariff. So the stock is in news.
Stock was trading in a range (rectangle pattern, darvas box, accumulation stage.
After the announcement of the tariff hike by the company, its stock price broke out from the range.
This breakout could be the continuation of the uptrend of the stock, and in coming days we have see further rise in the stock price of reliance.
Pattern gets invalidated if it breaks down from the range.
PREMEXPLNGood Volume Buildup.
Rectangular Pattern.
Good for Short term and Long term.
Do Like ,Comment , Follow for regular Updates...
Disclaimer : This is not a Buy or Sell recommendation. I am not SEBI Registered. Please consult your financial advisor before making any investments . This is for Educational purpose only.
Legal & General new directionAfter creating a rectangle since Jan 2024, Legal and General has broken to the downside after lacklustre targets issued yesterday. Price is falling below 231 support.
Since March 2013, L&G has gone nowhere and it looks like it could eventually hit 161, if the stock market reverts to a downtrend or business is below expectations.
Bitcoin Must Show Decisive in its Move before im excitedHi guys. So i posted recently some crypto related stock ideas. I felt like i should do a BTC update as they are directly related. When BTC goes up, all related crypto assets move up.
So lets jump right in.
This is a 1 week analysis.
So we have established a consolidation range. Consolidation ranges is just a price range between which an asset moves up and down in.
The key is to observe a confirmation of a breakout either ABOVE or BELOW it.
The Key lvls are:
1. $61,000 as support
2. $71,000 as Resistance
FOr our Bull market to continue and move into the final supercycle phase of the crypto market we need a DECISIVE BREAK ABOVE 71,000.
This will in a short time print a blowoff top and end Bull market.
I have up a bunch of Moving averages in different colors.
What i'd love to see is from ascending order:
Purple 1st
Green 2nd
Blue 3rd
Red at the bottom
This order signifies that a Bull market is going on.
STOCH RSI has also crossed BUllish above the 20 lvl. If you look left, everytime we've done so We've moved higher.
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Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on BTC in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Upwork a calm before the storm? Will we have a massive Bull run?Hi guys! This is a Macro analysis on Upwork (UPWK). Macro meaning larger timeframe aka the 1 week in this instance.
Alot of stocks are down fromt heir previous tops. Which means potentials for longterm gains for many names are possible. I try to make sense if things have the technical signs to buy or not.
For UPWK -> some interesting signs were observed. It was observed in comparison to previous patterns seen in the price action and indicators. Note however, past data does not reflect certainty. It does not need to repeat as is.
But again the resemblance is in your face! And it is something to keep in our minds.
Starting with price.
Notice the "Major Resistance" black trendline.
Price has been historically above it or below it with major moves seen.
Above it = Massive Bull Run
Below it = Downtrends followed by consolidation.
Being relatively new public company, we only have 1 data point to use.
Now notice the previous green box marked.
Red trendline shows the downtrend in price, followed by a black trendline that highlights the beginning of the uptrend before massive bull run.
Before we get ABOVE the "Major Resistance" trendline, we consolidate for a period of time in the orange rectangle. That then catapults prices significantly higher.
Notice Volume is seen to spike as well.
Also notice the indicators added:
STOCH RSI during price actions time inside the orange rectangle (consolidation) moves down.
As soon as it crosses Bullish, prices shoot out of the consolidation zone and above the Major Resistance.
Notice too the MACD, the pattern here is that it stalls here becoming almost flat, with histogram bars turning light green, as it turns Dark Green and Blue line curves up, this signals the price to shoot out of consolidation, moving above "Major Resistance".
Fast forward to our current data. We are repeating almost to the tee, the same pattern.
Will it be the same? Or will we be rejected?
Well, we need 3 signs to occur.
STOCH RSI must cross BULLISH (Blue line above orange line)
MACD needs Dark Green bar print with increasing size and Blue line to Curve UP
VOLUME Must start to increase/ spike
Without these 3 signals it is more likely we get rejected here!
Another thing to observe is the consolidation or rectangle pattern. Remember its never a good idea to trade within any chart pattern.
A confirmed break above will determine uptrend.
A confirmed break down will cause rejection.
Very important to continue to observe UPWK.
Ill be sure to update as things become clearer!
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Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on HOOD in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
PPLPHARMARectangle Pattern Breakout.
Volume Buildup seen.
Good for Short term.
Above all Key EMA.
Target 174 , 195 ...
Do Like ,Comment , Follow for regular Updates...
Keep Learning ,Keep Earning...
Disclaimer : This is not a Buy or Sell recommendation. I am not SEBI Registered. Please consult your financial advisor before making any investments . This is for Educational purpose only.
Paychex (PAYX) Revenue miss... Is this the end?Hi guys! As always, im looking for macro trends/ signals and critical movements/ developments in the markets.
What caught my eye is PAYX.
Today it gets the focus as it had Q3 revenue miss and its down 6% pre-market.
With panic coming in, ill go over technical developments and the big picture.
Lets jump in. We are in the 1 week timeframe (note this weeks candle has not yet printed and can current develops can change throughout the week).
Currently, we are range bound between $100.00 and $133.00.
After the large bull run it had looking left. It is now in a period of accumulation/ consolidation in my opinion.
This pattern started December 2021. So its a long-term pattern. Which will take alot to break out of.
Breaking to upside would continue the bull run to new all-time highs.
Getting there though, will take time. And we must break other obstacles first.
First thing to break is the Short-term resistance trendline.
2nd thing to break is the upsloping channel highlighted, which is a intermediate trend.
If we get rejected from any of these obstacles, we can also continue down to test the lower border of the range.
Our first test of support would be the lower border of the sloping channel.
We must also watch VOLUME -> increase in volume would help us with breaking this obstacles and eventually getting us to the top of the range and an eventual breakout.
Watch also the 2 indicators i put up.
MACD -> We need a bullish cross with the lines moving ABOVE black horizontal trendline to form a higher high. This would help the case of breaking trends, moving above the consolidation range and to new highs.
If we get a bearish cross we can retest the support line of the ascending channel and lower range of the consolidation zone.
RSI - A HIgher high print is needed to continue upward and eventually out of the consolidation range. Notice however the resistance ABOVE us, depicted by the trendlines.
A bearish case is printing a Lower low, doing so may bring us down to the black support trendline. Depending on how low the RSI goes, will determine how far down we go as well.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on PAYX in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
NVIDIA Weekly Technical AnalysisNVDA weekly - No RECOMMENDATION or ADVICE Status / EDUCATIONAL only - Support, Resistance, Trend Lines, Confluence, Cluster, Channel, Pitchfork, Rectangle, Fibonacci Extension - Hope it Helps, Good Luck
DISCLAIMER - This communication is not trading or investment advice, recommendation or solicitation to buy, sell or hold any investment product is provided for informational, educational and research purposes only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The author or persons involved in the conception, production and distribution of this material cannot be held responsible for transactions or any financial loss or damages resulting directly or indirectly from the use or application of any concepts or information contained in or derived from this material. Past performance is not indicative of future results. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves.
Bank Nifty: Rectangle Breakout signals potential UPSIDEOver the past few days, NSE:BANKNIFTY has experienced a downtrend, presenting an opportunity for traders to analyze a potential reversal through the formation of a rectangle pattern. The rectangle pattern is a horizontal consolidation pattern characterized by parallel support and resistance levels. It indicates a period of market indecision, where buyers and sellers are in a relative balance. The breakout has occurred above the neckline or resistance zone, suggesting a shift in market sentiment.
Breakout Confirmation: Traders should patiently wait for a clear breakout above the neckline or resistance zone. The breakout should be confirmed by the closing of a candle above this level, indicating a shift in market sentiment towards the bullish side.
Entry Point: Execute the trade on the day of the breakout, preferably after the closing price has convincingly breached the neckline. This ensures that the breakout is genuine and not a false signal.
Target Calculation: The target for the trade can be determined by measuring the distance between the low of the rectangle pattern and the neckline. This distance is then added to the breakout point, providing an estimate of the potential upward movement.
Retest Possibility: Be prepared for the possibility of a retest of the neckline after the initial breakout. This is a common occurrence, and traders should not be alarmed by a temporary pullback.
Risk Management:
Stop-Loss Placement : Mitigate potential losses by setting a stop-loss order below the neckline or the breakout point. The level of the stop-loss should be determined based on individual risk tolerance and the volatility of the asset.
Risk-Reward Ratio
: Evaluate the risk-reward ratio before entering the trade. Ensuring that potential profits outweigh potential losses is crucial for effective risk management.
SILVER FUTURES Daily Technical AnalysisSI1! Daily - No RECOMMENDATION or ADVICE Status / EDUCATIONAL only - Support, Resistance, Trend Lines, Cluster, Confluence, Rectangles, Pitchfork, Modified Schiff Pitchfork, Fibonacci Extension - Hope it Helps, Good Luck
DISCLAIMER - This communication is not trading or investment advice, recommendation or solicitation to buy, sell or hold any investment product is provided for informational, educational and research purposes only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The author or persons involved in the conception, production and distribution of this material cannot be held responsible for transactions or any financial loss or damages resulting directly or indirectly from the use or application of any concepts or information contained in or derived from this material. Past performance is not indicative of future results. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves.