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CIG was in a solid uptrend with volume to support the strength when it traded into this bullish downward sloping rectangle pattern. The falling nature of the pattern acts to shake out the weak long positions and cause a little confusion (as evidenced by the lack of volume in June and July. The stock then breaks out and volume surges. It's not an easy trade because the parallel trendlines don't offer any clues as to when the stock will breakout, but following other charting tools (like the high volume bullish engulfing pattern that formed at the bottom of the pattern just before the stock moved up and broke out) will help.
%20DPH.png)
DPH was in steady uptrend when it formed this bullish rectangle pattern. At first the pattern is bullish because the stock is in an uptrend. If the pattern lasts too long (this is subjective) the momentum would be neutralized. Notice the big volume in late February and early March. The first price target is measured by the height of the rectangle. The second target is measured by the move into the pattern.
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This is a textbook bullish rectangle pattern. The stock rallied on huge volume in early September. Then the stock traded between parallel trendlines on much lighter volume, and then the stock broke out on another big volume surge. The quick and violent move into the pattern was from about 7 to 11, so it is no surprise the move out of the pattern was also quick and violent and from 10 to 14.
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