ABSTRACT
This chapter describes various Rectangle formation most quickly and easily by comparison with that most nearly related chart pattern, the Symmetrical Triangle, as follows: volume, breakouts, false moves and premature breakouts. It shows some rule or criterion to distinguish a true Double Top Reversal Pattern from the Double Tops that do not imply Reversal when they appear as a part of a Consolidation Area in an uptrend. Triple Bottoms are simply Triple Tops turned upside down, with the same qualifications noted when discussing Double Bottoms. The risk of premature buying is expressed in a saying one sometimes hears in the boardrooms to the effect of "a Triple Bottom is always broken". The chapter explores the Symmetrical Triangle as a "picture of doubt." The Rectangle might, with even greater propriety, be called a picture of conflict. Of course, any fairly compact price formation represents conflict in the supply–demand sense.
