Rectangle in a top is a rebound formation that is formed after a long upward trend. A rectangle in a top is formed with gradually decreasing volume in each peak.
A rectangle in a top requires at least three peaks. Two horizontal trend lines are drawn for a rectangle, a resistance line along the peaks and a support line along the
bottoms. The price target for a rectangle in a top is the distance between the horizontal resistance line and the horizontal support line counted down from the horizontal support line. A sell signal is generated when the lower support line is crossed with falling volume.
