Rectangle Pattern Up Trend
The price is constrained by support and resistance levels in the Rectangle pattern. This means observing the pattern on a chart, and traders need to look for a price between the two horizontal lines.
The Rectangle marks several highs and lows. These highs and lows indicate a period of consolidation. Also, there is indecision in the market where buyers and sellers are competing with one another.
To identify the pattern, traders need to navigate it on either an uptrend or a downtrend. The price would then form several peaks and troughs. Finally, the breakout candle would confirm the direction of the trend.
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