RectangleA Rectangle is a continuation pattern that forms as a trading range during a pause in the trend. The pattern is easily identifiable by two comparable highs and two comparable lows. The highs and lows can be connected to form two parallel lines that make up the top and bottom of a rectangle.
Targets are listed for a brreak up from rectangle pattern with entry level at 136.3 with a clear uptrend
and a break down from rectangle at 97.25 in a clear downtrend
Mid Rectangle is possible stop either way it breaks
This can be a very long term pattern and some swing trade inside of the channel
Rectangles are sometimes referred to as trading ranges, consolidation zones or congestion areas.
Rectangles can extend for a few weeks or many months. If the pattern is less than 3 weeks, it is usually considered a flag, also a continuation pattern. Ideally, rectangles will develop over a 3-month period. Generally, the longer the pattern, the more significant the breakout. A 3-month pattern might be expected to fulfill its breakout projection. However, a 6-month pattern might be expected to exceed its breakout target.
The direction of the next significant move can only be determined after the breakout has occurred. As with the symmetrical triangle, rectangles are neutral patterns that are dependent on the direction of the future breakout. Volume patterns can sometimes offer clues, but there is no confirmation until an actual break above resistance or break below support.
Not a recommendation
