Bulkowski's Rectangle Tops Quiz

This is a good example of a rectangle top, even though it doesn't perform that well. Price trends upward into the pattern (A), and that distinguishes it from a rectangle bottom. The rectangle top is at B. Price moves horizontally and crosses the pattern from top to bottom and back again, touching each trendline at least 3 times (optimally but a minimum of 5 is a good benchmark). In this example, price make a partial decline at C, correctly predicting an upward breakout, which happens at D. The breakout can be any direction but is upward 63% of the time. Volume trends downward 70% of the time, too. This rectangle has an upward volume trend (E).

Find as many rectangle tops (and one rectangle bottom) as you can. For help, click here.

This shows a rectangle bottom at B (B is in the middle of a longer-term downtrend) and the rectangle top is at A. B isn't a good example of a rectangle bottom because it's too short and doesn't have as many touches as I like to see. It's more of a knot of congestion than a rectangle, I think.

Find as many rectangle tops as you can.

Here they are, A and B. Rect A looks loose. B looks tight. Tight patterns often perform better than loose ones (I tested this on high and tight flags I think). Regardless, B looks better than A.

The rectangle top is in red on the far right top of the chart. It has a downward breakout at A. How far will price drop? Pick one of the green lines.

The rectangle top is in red. Price drops to line 2 before recovering.