how rectangle pattern works ?

rectangle pattern
1. price moves in range on side ways to form a rectangle pattern.
2. as a result , a firm resistance on upper side and
support on lower side formed .
3. stock will have either a distribution phase or continuation phase
till breakout of resistance or breakdown of support happens
4. an impulsive move at resistance with volume will suggest a breakout
for steep , fast movement of the stock to next resistance levels .
5. an impulsive move at at support with volume will suggest a breakdown
for steep , fast movement of the stock to next support levels .
6. trade setup :
a.buy above resistance of rectangle pattern keeping support levels as stop loss .
b.sell below support of rectangle keeping resistance level levels as stop loss .
7. mostly a tussle happens in between resistance & support for good period . and fast breakouts and breakdowns happens
8. usually volume will be dry during consolidation phase of the pattern .
volume spike will happen at breakout / breakdown zone for trade confirmations.

for education purpose cadilahc taken one hour time frame ....
same applies for all times and tgts too.

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