Rectangle
A sideways range between a horizontal resistance and a horizontal support, each tested several times.
A rectangle is a pause in which buyers and sellers trade within a flat range. Classical chartists (Schabacker, Edwards & Magee) regard it as one of the most reliable patterns, because both boundaries are horizontal and easy to define. A break in the direction of the prior trend (a breakout after a rise, a breakdown after a fall) makes it a continuation; a break against it makes it a reversal. Double tops and bottoms are treated here as rectangle reversals ("rectangle top" / "rectangle bottom"), which is how Aksel Kibar records them.
Wide, loosely tested ranges are common in crypto; many breakouts and breakdowns fail and close back inside the range.
How we define it
- Boundary that breaks: a best-fit horizontal level through at least 3 swing tests (2 on 1W), retested late in the pattern; no close beyond it before the breakout or breakdown
- Opposite boundary: horizontal, tested at least twice across the range
- Price swings between the top and bottom quarters of the range at least 3 times (sideways, not a rounding turn)
- Minimum length: 2 months on 1D, 3 months on 1W, 10 days on 4H (from the first boundary test to the breakout or breakdown)
- Breakout (up) / breakdown (down): the first candle close above the upper boundary or below the lower boundary by at least 3% on 1D and 1W (1.5% on 4H), following Edwards & Magee
- Failed breaks: a breakout or breakdown that closes back inside the boundary within 6 candles on 4H, 5 on 1D or 3 on 1W is removed from the list
- Trend filter: breakouts only above the 200-period EMA (40-week EMA on 1W), breakdowns only below it
- Watchlist: the pattern meets the length and test rules, has not broken yet, and price is within 3% (or 1 ATR, at most 6%) of the boundary
No recent breakout or breakdown
No rectangle has completed recently. See all patterns.
Nothing on the watchlist
No mature rectangle is close to its breakout or breakdown level right now.