Rectangle (Range) Chart Pattern — How to Spot and Trade It

Price oscillates between horizontal support and resistance.

In plain words

A ball bouncing between a floor and a ceiling in a hallway.

What the classic books say

The Rectangle (Range) is a bilateral pattern with reference reliability Medium and illustrative behaviour of ~55-62% on breakout (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Common in consolidation phases.

Level by level

Beginner

Price bounces between a clear floor and ceiling until it finally breaks out.

Intermediate

Balanced supply/demand within a range; the breakout direction sets the next move.

Advanced

Trade the range edges or the breakout; the box height projects the target.

Trade plan (educational template)

• Entry: Fade the edges, or enter on a confirmed breakout.
• Stop-loss: Just outside the opposite boundary.
• Target: Box height projected from the breakout.
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• Expecting a breakout too early
• Ignoring false breaks

Practise it now

• ▶ Draw the Rectangle (Range) with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._