New traders usually sit down at the chart, look at which way the price is moving and open a position in that direction. Unfortunately for them, a rebound pattern can appear at this point and effectively thwart their plans. Knowing this pattern will not only help you avoid unpleasant situations but will also indicate potentially good places to take a position.

What is rebound pattern strategy?

Horizontal support and resistance lines

If you look at a bare price chart it often looks quite random at first glance. Try adding a horizontal line then. Try it on different peaks, and see if you can hook it somewhere so that it has at least two points of contact with the price chart. Add another line, this time to the bottom of the chart. See if you can position it so that the horizontal level has at least two points of contact with the price chart. Got it? First, you set a horizontal resistance level and then a horizontal support level.

Line rebounding is a graphical pattern which seeks to catch a moment when the price cannot break support or resistance levels.

Support and resistance levels
Support and resistance levels

When the price reaches the level of resistance and the first candlestick closes below this level many traders believe that the price upward dynamic has stopped. And trade for a fall.

rebound pattern
When the price meets resistance

Rebound line strategy and a trend

Just as you drew support and resistance lines as horizontal lines, you can also draw dynamic sloping lines to limit the range of price movement.

The rebound line strategy is relevant for a neutral trend just as for the upward and the downward trend. When the price reaches the support line and the first candlestick closes above this level some market participants believe that the price decrease dynamic has stopped and trade for a rise.

When price meets support
When the price meets support

The support line rebound is relevant for the neutral trend just as for the upward and downward trend.

Rebound line strategy and a trend
Rebound line strategy and a trend

You can read more about support and resistance trading strategy or about situations when price brakes support or resistance.

What the rebound pattern works best with

It is worth adding here that the rebound pattern works best in combination with other methods of technical analysis.
The first ones I would mention here are oscillators such as RSI, CCI or Stochastic Oscillator. They all have the property that they show well when the market is overbought or oversold. This alone can provide confirmation of a possible rebound.

As a second great tool here I would mention candlestick formations. The occurrence of a reversal candlestick pattern where we have a rebound line is a very valuable confirmation of a possible trend change.

A pair of moving averages, for example, can also be used to confirm an entry based on a rebound pattern. One popular pair is the EMA9 and EMA13. If the price reaches the resistance and then EMA9 crosses EMA13 downwards, we have a sell signal. The opposite is true for price support. If the price reaches support and then the EMA9 crosses the EMA13 upwards, then we have a buy signal with additional confirmation from the moving averages.

Do you already use rebound lines on your price charts? Maybe you have some interesting comments? Be sure to share them in the comments section.

We wish you successful trading with IQ option.


IQ option products like CFDs and options are investments that can be risky. This means that if you invest in them, you could lose your money quickly. In fact, 83% of people who invest in CFDs with this provider "IQ Option" lose money. You should make sure you understand how CFDs work and if you can afford to risk losing your money. Remember, this article is not giving you any advice about investing. Any information about what happened in the past or what could happen in the future is just an opinion and not guaranteed to be true. Including examples given in the content displayed. Be warned!

How useful was this post?

Click on a star to rate it!

Average rating 4.6 / 5. Vote count: 107

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at "

    1 Response to "Rebound Pattern on the IQ Option platform. #1 Easy Guide to Trade Bounces"

Leave a Reply

Your email address will not be published.

17 + 17 =