Rectangle Pattern

The rectangle pattern is one of the most common used technical analysis patterns. The rectangle pattern is formed when you have two specific levels where the market bounces from. In other words, the sellers are in control at the top of the pattern, while the buyers are in control at the bottom. The resulting back and forth action produces a rectangle-shaped pattern that is instantly recognizable, especially on higher time frames. It is because of this that the pattern tends to be widely used and loved by traders around the world.

<< Back to Glossary

Rectangle Pattern Video

Franc Versus Dollar and Euro July 21st // 20 July 2011

USD/CHF shows signs of going lower, but there is that pesky 0.82 level that is showing that it might cause a bounce around the rectangle pattern area. The EUR/CHF shows signs of strength, but only as much as it takes to psuh it up towards our next level to sell from. Play video >>

Kiwi Versus Dollar and Franc July 19th // 19 July 2011

NZD/USD has fallen the last couple of days in a row, but each time - the buyers step into the market to keep pushing this pair much higher. Once we break 0.85 - we could move onto be things. NZD/CHF has been rangebound in the rectangle pattern area. Why? They are two of the strongest currencies on earth right now! Play video >>

Rectangles // 13 July 2011

One of the easiest to spot and certainly common chart formations is the rectangle. The pattern will repeat over and over throughout a trend, and simply means that the markets are taking a rest before the next move up or down. Quite often, they are continuation patterns, but there are specific rules one should follow before taking that trade. Play video >>

eTorro - Trading Starts Here

Start Trading Forex with up to $10,000

  • 100s Videos and FX Strategy articles
  • Advice from our FX traders
  • Practive free with using real time