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Rectangle Top

The Rectangle Top is a sideways price range with clearly defined upper and lower boundaries. Usually breaks downward.

RESISTANCESUPPORTRectangle Top: Sideways consolidation → Break support → Decline

Pattern Details

Category

bilateral

Success Rate

62%

Average Move

-8%

Duration

2-6 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Upper boundary: Horizontal resistance line
  • 2
    Lower boundary: Horizontal support line
  • 3
    Price oscillates within channel

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter position when price breaks one of the boundaries
  • ✓
    Volume is typically inconsistent
  • ✓
    Target = Height of the channel
  • ✓
    Stop loss on opposite side of breakout
Trading Tips
  • Usually continues prior trend
  • Also called trading range
  • False breakouts frequently occur

Statistics

Breakout Statistics
Bullish Breakout38%
Bearish Breakout62%
Performance Metrics
Average Rise+6%
Average Decline-8%
Pullback Rate16%