Rectangle pattern
The rectangle pattern is a popular technical analysis tool used in financial markets. It is characterized by two parallel trendlines that act as support and resistance levels. This pattern indicates a period of consolidation, where the price trades within a range before breaking out. Traders often look for breakout opportunities when the price breaches either the upper or lower trendline. The rectangle pattern is considered a continuation pattern, suggesting that the price is likely to resume its previous trend after the consolidation phase. It can be found in various timeframes and is applicable to different assets, such as stocks, currencies, and commodities.
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