RECTANGLE IN AN UPTREND (BULLISH)

ESI / ITT Educational Services

Rectangle in an uptrend (bullish). From PRS, Vol. 3, No. 1, for the week of 1/6/03. Measure the base, add it to the breakout point and determine your measured price target. (Look at the huge volume on its breakout day.)

RECTANGLE IN A DOWNTREND (BEARISH)

GLK / Great Lakes Chemical Corp.

Rectangle in a downtrend (bearish). Notice how the how the volume increases on its breakout and continues to rise as the price falls (bearish confirmation). (More on volume.) From PRS, Vol. 3, No. 3, for the week of 1/20/03.

The information contained here was gathered from sources deemed reliable, however, no claim is made as to its accuracy or content. This does not contain specific recommendations to buy or sell at particular prices or times, nor should any of the examples presented be deemed as such. There is a risk of loss in trading stocks and stocks options and you should carefully consider your financial position before making any trades.  The reference to statistical probabilities does not pertain to profitability, but rather to the direction of the market. The size and the duration of the markets move, as well as entry and exit prices ultimately determines success or failure in a trade and is in no way represented in these statistics. Furthermore,  no representation is being made that any of the examples shown resulted in actual trades. This is not, nor is it intended to be, a complete study of chart patterns or technical analysis and should not be deemed as such.

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