Rectangle
Also known as: Range, Trading Range, Box
Price oscillates between horizontal support and horizontal resistance. A sideways phase that can resolve in either direction.
How it forms
Several touches on top (resistance) and bottom (support) form a clear box. Inside the range you can trade edge to edge; the breakout sets the next direction.
How it is typically traded
Range trading: buy at support / sell at resistance. Breakout trading: on a confirmed break of an edge in its direction.
Range trading: the opposite edge. Breakout: the height of the box, projected from the edge.
Range trading: just outside the traded edge. Breakout: back inside the box.
Where & when – and the limits
Typical in calm phases or as a pause within a trend. Beware false breaks that fall right back into the range – the box edges are zones, not exact lines.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
Learn more in the academy