This entry is missingOverview, add relevant content to make the entry more complete, and it can also be upgraded quickly. Hurry upeditCome on!
Box shape, also called rectangle, is also a typicalFinishing form。When the price rises to a certain level, it encounters resistance, turns around and falls back, but soon gets support and recovers. However, when it recovers to the previous high, it is again blocked, and when it falls to the last low, it gets support again.These short-term highs and lows are connected by straight lines, and then a channel can be drawn. The channel is neither upward nor downward, but develops in parallel. This isRectangle shape。
Generally speaking, when the market goes up and down, the market goes up and downDownmarketLong and narrow rectangles with small volume often appear at the original bottom.After breaking the upper and lower limits, there are signs of buying and selling,Rise and fall rangeUsually equal to the width of the rectangle itself.When the upper limit resistance is exceeded, it is a "buying signal".On the contrary, if it falls below, it is a "sell signal".In the process of rectangle formation, unless there is sudden message disruption, its trading volume should be continuously reduced.If irregular high transaction occurs during the formation of the form, the form may fail.When the price exceeds the upper limit of the rectangle, there must bevolumeSurge cooperation;However, if it falls below the lower limit, it is not necessary to increase the trading volume.
After the breakthrough of rectangle, the price often appearsBackpumpingThis situation usually occurs within three days to three weeks after the breakthrough.The backdraft will end above the top line, and the false recovery after falling below will be blocked below the bottom line.
