TRADING GLOSSARY
Rectangle
A rectangle is a chart pattern in which price moves between broadly horizontal support and resistance levels, repeatedly testing both boundaries. It describes a trading range that may end with continuation or reversal of the preceding trend, and apparent breakouts can fail.
EXAMPLE
In a hypothetical chart, price repeatedly rebounds from a flat lower boundary and retreats from a flat upper boundary, forming a rectangle.
RELATED TERMS
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure