Rectangle and Trading Range Patterns
A 1-minute lesson from the MarketPro academy, one of 22 in chart patterns.
A rectangle pattern, also called a trading range, forms when price oscillates between a fairly consistent horizontal support level and a fairly consistent horizontal resistance level over an extended period, reflecting a standoff between buyers and sellers. Unlike triangles, the boundaries of a rectangle do not converge; price simply bounces between roughly the same two horizontal levels multiple times until a breakout eventually occurs in one direction or the other.
A rectangle pattern, also called a trading range, forms when price oscillates between a fairly consistent horizontal support level and a fairly consistent horizontal resistance level over an extended period, reflecting a standoff between buyers and sellers.
Unlike triangles, the boundaries of a rectangle do not converge; price simply bounces between roughly the same two horizontal levels multiple times until a breakout eventually occurs in one direction or the other.
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Lesson 15 of 22 in Chart patterns
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