GBP/JPY - SHORT
BEARISH RECTANGLE - Form
In a downtrend, price action finds first resistance (1), where it reverses direction and goes
upwards till finding first support (2).
Price action reverse direction from support (2) and goes downwards, till finding the second
resistance (3) which will be around the same rate of first resistance (1).
Price action reverse direction from resistance (3) and goes upwards, till finding the second
support (4) which will be around the same rate of first support (2).
The pattern is completed when price action reverse direction from the last touch to the
upper horizontal support and goes downwards till it breaks the lower resistance at point
(5).
In a downtrend, price action finds first resistance (1), where it reverses direction and goes
upwards till finding first support (2).
Price action reverse direction from support (2) and goes downwards, till finding the second
resistance (3) which will be around the same rate of first resistance (1).
Price action reverse direction from resistance (3) and goes upwards, till finding the second
support (4) which will be around the same rate of first support (2).
The pattern is completed when price action reverse direction from the last touch to the
upper horizontal support and goes downwards till it breaks the lower resistance at point
(5).
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