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Definition of 'Rectangles'
A technical trading pattern in which a security's value ranges between two horizontal price points, creating a rectangle on a trader's screen. Rectangles occur in situations where a security is consistently bought up, when a lower price value is established, and sold down, when an upper value is similarly established. These price values remain "hard" values for a definite period, which is what creates the rectangular pattern.
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Investopedia explains 'Rectangles'
Often rigid trading patterns, such as rectangles, are associated with well-informed investors buying and selling a security. Large price movements in one direction or another are not uncommon, when either the upper or lower limits of the rectangle's pattern are broken. Novice traders would be best to stay away from such patterns where a clear indicator is not present.
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Search results for 'Rectangles'
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http://www.investopedia.com/articles/technical/02/032602.asp
Continuation Patterns: Rectangles and Pennants. December 02 2011 | Filed Under »
Active Trading, Continuation Patterns, Retirement, Technical Analysis. ...
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http://www.investopedia.com/articles/technical/02/021102.asp
... chart. Common continuation patterns include triangles, flags, pennants
and rectangles. Advertisement - Article continues below. ...
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http://www.investopedia.com/articles/tags/charts-and-patterns/
... Find out how. Read More »; Continuation Patterns: Rectangles and Pennants. Flags
and pennants indicate direction of activity of the prevailing trend. Learn how. ...
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http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/chart_type.asp
... Low = Min (Low, Open, Close). Three Line-Break - In this chart type, price is depicted
by hollow rectangles that represent complete uptrends and downtrends. ...
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http://www.investopedia.com/articles/trading/04/120804.asp
... identify areas of price movement within cycles. Some of these include triangles,
wedges and rectangles. These types of patterns can be ...
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