Rectangle
ChartNeutralContinuationReliability:
Price swings between a flat support and a flat resistance, forming a consolidation range; the breakout usually resumes the prior trend.
Description
Two nearly parallel horizontal boundaries contain highs and lows across several touches, reflecting a temporary balance before one side wins.
Market psychology
Inside the range buyers and sellers are evenly matched, and the market coils until one side dominates and pushes price out of the boundary.
How to trade
Trade in the direction of the breakout, or fade the two edges while price ranges; target about the range height projected from the break, stop back inside the range.
Confirmation
A decisive close beyond support or resistance, ideally on rising volume.
Also known as: Rectangle, Trading Range
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.