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Rectangle Bottom

The Rectangle Bottom is a sideways price range at the bottom. Usually breaks upward.

RESISTANCESUPPORTRectangle Bottom: Sideways consolidation → Break resistance → Rise

Pattern Details

Category

bilateral

Success Rate

64%

Average Move

+10%

Duration

2-6 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Upper boundary: Horizontal resistance line
  • 2
    Lower boundary: Horizontal support line
  • 3
    Price oscillates within channel at bottom

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter long position when price breaks above upper boundary
  • ✓
    Volume should increase on breakout
  • ✓
    Target = Height of the channel
  • ✓
    Stop loss below lower boundary
Trading Tips
  • Usually appears after downtrend
  • Confirms accumulation at bottom
  • Breakout with high volume is stronger

Statistics

Breakout Statistics
Bullish Breakout64%
Bearish Breakout36%
Performance Metrics
Average Rise+10%
Average Decline-4%
Pullback Rate14%