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Home / Technical Analysis / Chart patterns / Rectangle

Chart pattern · Continuation · Neutral

Rectangle

What is it, in one line

Price oscillates between two roughly parallel support and resistance lines before breaking out.

Neutral · Continuation · verdict: Traditional claim, not yet measured here

Neutral Continuation Traditional claim
Schematic · the live site draws this from the rule

Formation rule

Price oscillates between two roughly parallel support and resistance lines before breaking out.

Method

Target and invalidation

Conventional target: A breakout projects a move equal to the rectangle’s height.

Invalidated by: A close back inside the range after a breakout invalidates that break.

Traditional claim, not measured

This is the standard technical-analysis interpretation. It has not been tested against our dataset the way the candlestick formations have.

All 18 chart patterns →

Other continuation chart patterns

All 18 →
Cup and Handle A rounded cup followed by a shorter shallow pullback, the handle, before the prior advance resumes.
Ascending Triangle A flat resistance line with a rising support line, compressing toward the top.
Descending Triangle A flat support line with a falling resistance line, compressing toward the bottom.
Symmetrical Triangle Converging trendlines, one falling and one rising, with no directional bias until the break.

Size a trade on this setup before you take it.