Does backdating explain the stock price pattern

Posted by / 26-Jan-2020 12:37

The channel price pattern is a fairly common sight in trending moves that have good volume and acts as a delayed continuation pattern.

Note that the channel pattern is similar to the flag in that they both have periods of consolidation between parallel trendlines, but the channel pattern is generally wider and consists of many more bars which increases its strength and success rate.

It is very similar to the channel pattern, except that the pattern does not have a slope against the preceding trend which gives it a higher chance of successful continuation.

The rectangle pattern is defined by a strong trending move followed by two or more nearly equal tops and bottoms that create two parallel horizontal trendlines (support and resistance).

The triple top is defined by three nearly equal highs with some space between the touches, while a triple bottom is created from three nearly equal lows.

The pattern is complete when price breaks below the swing low points created between the highs in a triple top, or when price breaks above the swing high points created between the lows in a triple bottom.

The double top is defined by two nearly equal highs with some space between the touches, while a double bottom is created from two nearly equal lows.The only difference between the bullish and bearish variations is that the bullish rectangle pattern starts after a bullish trending move, and the bearish rectangle pattern starts after a bearish trending move.It's worth noting that these rectangle price patterns are essentially failed double and triple tops/bottoms.The pattern is considered a success when price covers the same distance after the breakout as the distance from the triple high to the furthest swing low point in a triple top, or the distance from the triple low to furthest swing high in a triple bottom (see red arrows).The rectangle price pattern is a continuation pattern that follows a trending move.

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