Continuation Patterns · Bullish
Bullish Rectangle
Price pauses between two horizontal lines after a rise, then breaks the top.
Highs stall at one price and lows stall at another. The bullish continuation example is a close above the top line.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- At least two highs meet a flat ceiling.
- At least two lows meet a flat floor.
- The ceiling and floor are roughly parallel.
Market context
After a rise, a break of the ceiling is the continuation example. A break of the floor invalidates that example.
Entry example
An example entry is the close above the ceiling.
Stop-loss example
An example stop is back inside the rectangle, below the last low.
Target example
A common teaching method adds the rectangle height to the break.
Common mistakes
- Forcing flat lines onto swings that are clearly sloping.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.