In this video, you will learn about the rectangle break strategy.
As you can see on the AUD/NZD daily chart, this is the rectangle box marked. The market has been oscillating between the support and resistance levels for some time. At some point, the market broke to the upside. You can take a long position and place your stop-loss halfway into the rectangle.
For determining the take-profit level, take the measurement from the height of this box, and place it at the breakout. The market hit your take-profit and gave a risk to reward ratio of 2:1.
You can use this pattern in a higher timeframe for better results and will work good as a long-term strategy. This pattern occurs frequently, easy to spot, and you can enter using a breakout in either direction.