Consolidation And Range Pattern
Introduction
A rectangle pattern, also known as a trading range or a consolidation pattern, is a technical analysis pattern that occurs on price charts. It is characterized by horizontal lines that act as support and resistance levels, creating a rectangular shape.
📄️ Pattern Key Features
The rectangle pattern is formed when the price of an asset trades within a relatively narrow range, with the upper and lower boundaries serving as resistance and support levels, respectively. These boundaries are often drawn as straight lines, creating a rectangle-like shape on the chart.
📄️ How To Trade
Consolidation And Range Pattern
How To Setup
Our Consolidation And Range Pattern indicator is designed to identify rectangle patterns using two distinct swing sizes. By default, the first rectangle's swing size is set to 4, and the second rectangle's swing size is set to 10.
To modify the swing size, navigate to the indicator settings (1) and adjust the rectangle size in the "Detection" section (2).
A larger rectangle size corresponds to the detection of larger patterns, while a smaller rectangle size results in the identification of smaller patterns by our indicator.