Rectangle Pattern

The rectangle pattern is a graphical pattern that appears on the asset price chart and is characterized by horizontal lines indicating support and resistance levels. It got its name because of its shape resembling a rectangle.

In trading, the Rectangle pattern is used to determine the possible trend development and predict future price movements. It signals consolidation periods when the asset price fluctuates within a certain range between support and resistance levels.

Trading strategies based on the Rectangle pattern can include entering a position when the upper or lower border of the rectangle is broken, as well as using stop losses and profit-takes based on the width of the rectangle.

It is important to keep in mind that the successful use of the Rectangle pattern requires confirmation by other indicators and analytical tools, as well as risk management and proper planning of trading operations.

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