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CIMA gapped down on big volume and then traded into a bearish rectangle pattern. These patterns typically resolve themselves in the direction of the trend which was obviously down. In this situation, traders need to be aware of a possible attempt at filling the gap, but once support was taken out, the stock couldn't even muster any type of bounce for over a month.
%20CVC.png)
CVC was in a steady downtrend when it formed this bearish rectangle pattern. The false break down in July serves as example as to the difficulty in trading such patterns. Unlike triangles which have converging trendlines and therefore must break down by a certain day, rectangles can last years, and false moves in both directions are very common.
%20ADIC.png)
Textbook play here. ADIC was weak and then trended sideways between parallel trendlines. Once support was taken out, the downtrend continued and made for a nice trade for those who like to enter positions and patiently let them run their course.
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