Prices trend down to the formation then oscillate between two horizontal trendlines before breaking out upward. There should be at least two touches of each trendline.
Percent of successful formations – 93%
Failure rate – 0%
Average time to throwback completion – 3 hours
Measure the height of the rectangle by subtracting the value of the trendlines from each other. Add the height to the top trendline. The result is the expected minimum price move.