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Glossary

Bearish Rectangle

Structure. The Bearish Rectangle is projected when two parallel tradelines (support and resistance) connect the latest lows and highs of the price, which contain many price fluctuations inside.

Tool Interpretation

The Bearish Rectangle gives a ‘sell’ signal when the price goes below the support line.

Formula:

T = S – H Where: T –target price S – support level (pattern’s low) H – pattern’s height (distance between support and resistance)
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