GLOSSARY

RECTANGLE

25 May 2016 By PDSNET

A charting formation in which a share's (or any security) price is bound between two horizontal lines. The upper horizontal line represents resistance at that price level. The bottom horizontal line represents support at that price level. A breakout on the upper resistance line would provide a clear buy signal. Likewise, a breakout on the lower support line would indicate that a downtrend will occur and it's best to sell.

rectangle formation
Rectangle Formation



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