Rectangles formed by drawing two horizontal lines, one horizontal line includes high points only, and another horizontal line includes low points only. This pattern also called “Box” or “Trading Range”.
Minimum price movement equals to the distance between two trend lines when drawn from the breakout point. This pattern can be bullish or bearish.
Let’s take a look at a bullish rectangle. Here is an example of the bullish rectangle.
Now, check out an example of the bullish rectangle and its breakout in the daily technical chart of GBP/USD.
Now, let’s take a look at a bearish rectangle. Here is an example of the bearish rectangle.
Now, here is an example of the bullish rectangle and its breakout in the daily technical chart of EUR/USD.
Originally published at Continuation Patterns – Rectangles (Bullish and Bearish)