---
title: "Rectangle pattern in candlestick chart"
description: "A rectangle is a common consolidation pattern, usually appearing during a pause in a trend, indicating that the price is oscillating within a certain range, waiting for a breakout direction. It consis"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/29330919.md"
published_at: "2025-05-03T07:15:21.000Z"
author: "[小林的交易员](https://longbridge.com/en/profiles/14620627)"
---

# Rectangle pattern in candlestick chart

A rectangle is a common consolidation pattern, often appearing as a pause within a trend, indicating price oscillations within a certain range while awaiting a breakout direction. It consists of two parallel horizontal lines, resembling a "rectangular box."

Pattern Composition:

-   Upper Resistance Line: Connects multiple price highs, forming a horizontal resistance level.  
     
-   Lower Support Line: Connects multiple price lows, forming a horizontal support level.  
     
-   Characteristics: Prices oscillate repeatedly between the upper and lower lines, with relatively stable volatility.

Trading Signals:  
Breakout above the upper resistance line: Indicates strengthening bullish momentum, potentially continuing the uptrend, serving as a potential buy signal.  
Breakout below the lower support line: Indicates bearish dominance, potentially continuing the downtrend, serving as a potential sell signal.  
The breakout direction determines the subsequent trend.  
  
The rectangle represents a market "resting" phase—remain patient before the breakout and monitor trading volume and direction.

##### **"This article is for educational purposes only and does not constitute investment advice."**

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.