What is the Square Box chart pattern?
This recently discovered pattern usually occurs after a prior run-up from a cup-with-handle or double-bottom. The formation typically lasts from four to seven weeks; doesn’t correct too much, usually only 10% to 15%; and has a square, boxy look. Some square box patterns and flat bases patterns are interchangeable. However, a 4-week square box cannot be a flat base (it is too short) nor can an 8-week or longer flat base be called a square box (it is too long). In general, use the flat base when the base looks flat and the square box when it looks square as long as the other parameters are met. Investors.com has Online Courses containing complete lessons on chart reading.