isn't rectangle considered as consolidation in process?some of the charts have quite long time frame, i.e > 2 months (8weeks). fair to say, the longer the formation, the stronger the resistance and support, and it is unlikely to change unless some events occur.
does this longer time frame will reduce the breakout possibility?
You are quite right ...
After the long formation, it will definitely breakout. The question is should it break up or down?
Normally, after a long rectangle, it should go back to where it comes from. Unless, it is at transition phase, the rectangle shouldn't be too long.
When you are not sure about the chart (should it break up or down?), flip the chart upside down, you will be able to see much clearer (always practice that).
Happy trading!!!
Normally, after a long rectangle, it should go back to where it comes from. Unless, it is at transition phase, the rectangle shouldn't be too long.
When you are not sure about the chart (should it break up or down?), flip the chart upside down, you will be able to see much clearer (always practice that).
Happy trading!!!
Huasing Association 1999 - 2013