Continuation Patterns · Bearish
Bearish Rectangle
Price pauses between two horizontal lines after a drop, then breaks the floor.
The range is flat. The bearish continuation example is a close below the floor.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Highs respect one horizontal line.
- Lows respect a lower horizontal line.
- The example trigger is a close below the lower line after a decline.
Market context
The same shape after a rally can break either way. Direction comes from the break, not from the rectangle name alone.
Entry example
An example entry is the close below the floor.
Stop-loss example
An example stop is back above the last high inside the range.
Target example
A common teaching method subtracts the rectangle height from the break.
Common mistakes
- Assuming every sideways box continues the prior trend.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.