Real-time pattern trading is the easiest way to find entry and exit prices if you can scan thousands of stocks and ETFs within minutes. It is definitely impossible for humans. Artificial Intelligence (A.I.) not only discovers these patterns, but also checks if they worked out well in the past. Knowing the success rate in the past allows A.I. to establish the odds of success in the future.
The Rectangle Bottom pattern forms when the price of a security is stuck in a rangebound motion, bouncing between support and resistance levels. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern. Depending on who gives up first buyers or sellers the price can Breakout in either direction.
This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong downtrend leading into the formation.
If price breaks out from the bottom pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, calculate the pattern’s height by taking the difference between the support and resistance levels. Then, subtract the pattern height from the breakout price to calculate the target price.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
Time frames No matter your trading strategy (day trading, swing, etc), we have patterns that will be ready to trade.
SGRP - Spar Group, Inc.
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 67% |
| TARGET (EXIT) PRICE | 1.78 USD |
| BREAKOUT (ENTRY) PRICE | 1.61 USD |
| DISTANCE TO TARGET PRICE | 8.85% |
| EMERGED ON | Aug 13, closing price |
| WITH CONFIDENCE LEVEL | 67% |
PAYS - PaySign Inc
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 36% |
| TARGET (EXIT) PRICE | 2.64 USD |
| BREAKOUT (ENTRY) PRICE | 2.62 USD |
| DISTANCE TO TARGET PRICE | 2.42% |
| EMERGED ON | Aug 13, 02:45 PM (EDT) |
| WITH CONFIDENCE LEVEL | 47% |
FUNC - First United Corporation
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 34% |
| TARGET (EXIT) PRICE | 17.80 USD |
| BREAKOUT (ENTRY) PRICE | 17.76 USD |
| DISTANCE TO TARGET PRICE | 1.24% |
| EMERGED ON | Aug 13, 02:00 PM (EDT) |
| WITH CONFIDENCE LEVEL | 43% |
CCNE - CNB Financial Corp (PA)
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 34% |
| TARGET (EXIT) PRICE | 25.07 USD |
| BREAKOUT (ENTRY) PRICE | 24.82 USD |
| DISTANCE TO TARGET PRICE | 1.03% |
| EMERGED ON | Aug 13, 02:00 PM (EDT) |
| WITH CONFIDENCE LEVEL | 36% |
