Rectangle (Range)
Definition
Price oscillates between horizontal support and resistance.
Psychology
Price bounces between a clear floor and ceiling until it finally breaks out.
Real-life analogy
💡 A ball bouncing between a floor and a ceiling in a hallway.
Expected direction
either
Entry / Stop / Target
Entry: Fade the edges, or enter on a confirmed breakout. · Stop: Just outside the opposite boundary. · Target: Box height projected from the breakout.
Historical behaviour
Common in consolidation phases.
Illustrative success rate
~55-62% on breakout · Medium reliability
Common beginner mistakes
- • Expecting a breakout too early
- • Ignoring false breaks
Quick quiz — did you understand?
1. Is the Rectangle (Range) generally considered bullish, bearish, or neutral?
2. After a confirmed Rectangle (Range), the expected direction is usually:
3. Which is a common beginner mistake with the Rectangle (Range)?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.