Rectangle Chart Pattern
A formation in which price stays within a bounded range, creating horizontal trendlines with well-defined support and resistance. Rectangles signal market indecision, a supply-demand stalemate, and traders watch for a breakout in either direction; a rectangle in a downtrend is bearish, in an uptrend bullish.
Related terms
Range
When a security trades between consistent high and low price points for a given period, identified by charting the highs and lows across horizontal trendlines, for example a 52-week trading range.
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A price level where a market tends to encounter buying pressure and struggles to fall below, formed when buyers repeatedly step in at the same point. Technical analysts chart support alongside resistance to understand market trends and identify potential reversal points.
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A price level where a market tends to encounter selling pressure and struggles to rise above, formed when more traders repeatedly sell than buy at that point. Identified through technical analysis, resistance levels mark potential reversal points.
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Bar Chart
A chart type built from four significant points: the high and low prices, which form the vertical bar; the opening price, marked with a horizontal line to the left of the bar; and the closing price, marked with a horizontal line to the right.
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A chart pattern showing when demand and supply of a product are almost equal, resulting in a narrow trading range and the merging of support and resistance levels.
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A technical analysis tool consisting of a band plotted two standard deviations either side of a simple moving average, used to find support and resistance levels.
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A chart type used to analyse a market’s price. Unlike bar charts, candlestick charts show the market’s high, low, open and closing price within each period.
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A trader who analyses a market’s price history to determine future price trends, using a range of analytical tools and indicators to conduct technical analysis on a price chart.
Read full definitionConsolidation
A period of range-bound activity after an extended price move, in which a market neither continues nor counters the longer-term trend.
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