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Bullish Rectangle
Signal
Bullish
Win Rate
64%
Avg Move
+10.0%
Reliability
Medium

Pattern Definition

A bullish rectangle is a consolidation where price repeatedly bounces between clear horizontal support and resistance; ultimately breaking out above resistance on volume confirms the uptrend's continuation.

Market Psychology

Smart money holding and accumulating. The oscillation shows large players buying at support, selling at resistance, gradually building position; the breakout confirms accumulation is complete and markup begins.

Trading Application

Enter long on a high-volume breakout above the rectangle's upper boundary (win rate 64%). Stop-loss below the rectangle's lower boundary. Target = rectangle height added to breakout point.

Important Notes

Longer consolidation and more tests of the range = stronger breakout force. Volume should contract inside the range; expansion is required on the breakout.