Chart patterns are not guaranteed to predict future movements, they are used as a tool in conjunction with other forms of technical and fundamental analysis. Additionally, market conditions such as volatility and liquidity can affect the reliability of chart patterns.
To increase the reliability of chart patterns, traders should use them in conjunction with other forms of technical and fundamental analysis, and pay attention to the volume and volatility of the market. Traders should also be aware of different market conditions, such as volatility and liquidity, which can affect the reliability of chart patterns. Additionally, it’s important to consider the duration of the consolidation period when analyzing rectangle patterns.