Real-time pattern trading is the easiest way to find entry and exit prices if you can scan thousands of stocks and ETFs within minutes. It is definitely impossible for humans. Artificial Intelligence (A.I.) not only discovers these patterns, but also checks if they worked out well in the past. Knowing the success rate in the past allows A.I. to establish the odds of success in the future.
The Rectangle Bottom pattern forms when the price of a security is stuck in a range bound motion. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first buyers or sellers the price can breakout in either direction.
This pattern is commonly associated with directionless markets. Usually, the pattern performs better when there is a strong downtrend leading into the formation.
Trade Idea
If the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout price level. To identify an exit, compute the target price level by adding the pattern height (which is the distance between the horizontal lines) to the breakout price.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.
Time frames No matter your trading strategy (day trading, swing, etc), we have patterns that will be ready to trade.
CREG - China Recycling Energy Corporation
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 59% |
| TARGET (EXIT) PRICE | 7.35 USD |
| BREAKOUT (ENTRY) PRICE | 7.08 USD |
| DISTANCE TO TARGET PRICE | 7.93% |
| EMERGED ON | Aug 06, closing price |
| WITH CONFIDENCE LEVEL | 59% |
HSC - Harsco Corp.
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 60% |
| TARGET (EXIT) PRICE | 18.99 USD |
| BREAKOUT (ENTRY) PRICE | 18.88 USD |
| DISTANCE TO TARGET PRICE | 1.22% |
| EMERGED ON | Aug 06, closing price |
| WITH CONFIDENCE LEVEL | 60% |
AAP - Advance Auto Parts Inc
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 59% |
| TARGET (EXIT) PRICE | 207.32 USD |
| BREAKOUT (ENTRY) PRICE | 206.44 USD |
| DISTANCE TO TARGET PRICE | 0.83% |
| EMERGED ON | Aug 06, closing price |
| WITH CONFIDENCE LEVEL | 59% |
ARTL - Artelo Biosciences Inc
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 59% |
| TARGET (EXIT) PRICE | 0.97 USD |
| BREAKOUT (ENTRY) PRICE | 0.96 USD |
| DISTANCE TO TARGET PRICE | 1.96% |
| EMERGED ON | Aug 06, closing price |
| WITH CONFIDENCE LEVEL | 59% |
