What the lesson covers

1. 0:00Two flat lines, both tested more than once. Nothing to interpret, which is most of the appeal.
2. 0:06The shape. Price shuttling between a horizontal ceiling and a horizontal floor for weeks, reaching both, drifting neither way, until one session closes outside.
3. 0:17Why it forms. Somebody has stock to sell at the top and somebody has money to spend at the bottom. The rectangle lasts exactly as long as both inventories do.
4. 0:27The levels that matter. The ceiling, the floor, the height between them, and the most recent touch. The height is a real measured quantity, which is rare here.
5. 0:37Where it completes. A close outside the range on heavy volume completes it. A close back inside says it did not, and that is unusually clean because the level is not in dispute.
6. 0:48How often it follows through. Sixty-two to sixty-eight, with the top of that reserved for long ranges breaking in the direction of the trend that led in.
7. 0:57The same shape failing. The whipsaw, and rectangles do it best. The break collects everyone watching an obvious level, fails, and gives back the entire height of the range.
8. 1:08The tells. A break on ordinary volume, a close back inside within days, or a range that coiled in the middle instead of reaching both sides.
9. 1:18The retest decides it. Everything before that is just a line being crossed.