Bearish Rectangle Top
The bearish rectangle top pattern functions as a reversal pattern when it occurs in a uptrend and the breakout happens to the downside.
The price rise in a strong uptrend and then starts to consolidate between support and resistance levels.
The consolidation marks a period of equilibrium when neither buyers nor sellers are stronger than the other party.
This up-down struggle continues for a while and the pattern begins to exhibit the shape of a rectangle.
In the case of a Bearish rectangle top chart pattern, the stop loss should be placed at the previous high of the pattern.
The limitation for the target will be the previous support level which was formed before by the price action.
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