The Rectangle is one of the most popular and easy patterns that is used in the technical analysis. Though being a rather simple pattern, it is a quite important and strong figure that is a very obvious sign of a trend continuation. After noticing it, a trader gets an opportunity to place a potentially profitable order.

In other words, the Rectangle signals a sort of a pause in a trend, indicating price consolidation before a jump towards the unfolding trend. This pattern is formed when the market is trading sideways.

The pattern looks similar to another figure of the technical analysis – the Flag. However, the Rectangle has horizontal support and resistance lines, and there is no flagpole in it. Prices move inside the pattern between two parallel lines. Two vertical lines can be drawn in order to complete the figure, but it is not necessary as they do not play any significant role.

It is important to pay attention to the fundamental components. Formation of the Rectangle often precedes publication of some important news the result of which is hard to be predicted. If the published data coincides with forecasts, then prices usually move with the previous bias.

It often happens that prices break in the direction of the previous trend. That is why the Rectangle is defined as a continuation pattern. However, sometimes prices break the pattern and move in the opposite direction. In that case the Rectangle becomes a reversal pattern. It may happen after macroeconomic statistics do not match forecasts.

It is quite easy to distinguish the Rectangle on a chart. It looks as a small trading channel or a sideways trend. The figure indicates that bears and bulls reached parity. Until a support or resistance line is broken, the Rectangle signals continuation of a trend.

If the Rectangle appears in the bullish market, then prices break upwards and such a figure is called the Bullish rectangle. If it occurs in the bearish market and prices break downwards, then the figure is called a bearish Rectangle.

Actual patterns

Teratas Ganda
was formed on 09.04 at 22:45:14 (UTC+0)
signal strength 2 of 5

Pola Teratas Ganda telah terbentuk pada GOLD M15. Pola ini menandakan bahwa tren telah berubah dari kenaikan menjadi penurunan. Mungkin, jika dasar pola di 3048.18 ditembus, maka pergerakan menurun akan

Rangka waktu M5 dan M15 mungkin memiliki lebih dari titik entri yang keliru.

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Segitiga Simetris Bearish
was formed on 09.04 at 22:37:36 (UTC+0)
signal strength 1 of 5

Menurut Grafik dari M5, EURUSD dibentuk pola Segitiga Simetris Bearish. Deskripsi: Batas yang lebih rendah adalah 1.0913/1.0944 dan batas atas adalah 1.0990/1.0944. Lebar pola diukur dalam grafik di -77 pips

Rangka waktu M5 dan M15 mungkin memiliki lebih dari titik entri yang keliru.

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Teratas Triple
was formed on 09.04 at 22:35:39 (UTC+0)
signal strength 1 of 5

Pola Teratas Triple telah terbentuk pada grafik EURJPY M5. Fitur-fitur pola: perbatasan memiliki sudut yang naik; batas bawah pola memiliki koordinat 161.49/161.63 dengan batas atas 162.17/162.00; proyeksi lebar adalah

Rangka waktu M5 dan M15 mungkin memiliki lebih dari titik entri yang keliru.

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