Rectangular Pattern

A rectangle pattern or box pattern is a trading range which forms as a consolidation phase following a trend, making it a continuation pattern in most cases. The parallel trend lines connecting multiple highs and lows during this extended period give the pattern its rectangle shape.
An upside breakout from a rectangle pattern following an uptrend is a continuation signal for higher prices and is a technical buy signal. A downside breakout from a rectangle pattern following a downtrend is a continuation signal for lower prices and is a technical sell signal.
A rectangle pattern breakout can be expected to achieve the equivalent of the height of the rectangle added to the breakout level.