• Language & Exchange Rate Switch
  • Preference Settings
    Rise/fall colour
    Start-End Time of the Change
Web3 Exchange
Gate Blog

Your Gateway to crypto news and insights

Gate.io Blog Gate.io AMA : The Technical Pattern - Rectangle _Box_, Mar.2nd

Gate.io AMA : The Technical Pattern - Rectangle _Box_, Mar.2nd

28 March 14:30
Gate.io AMA : The Technical Pattern - Rectangle (Box), Mar.2nd

Q: Today let's study more about Technical Pattern - Rectangle (Box)
A : Let's get to know the basic definition.

Rectangle (box)
The rectangle is also known as the box. Every time the currency price drops, it gains support on the same horizontal line and rises, and when it rises, it encounters pressure on the same horizontal line and falls. Connecting the highs and lows creates a rectangular technical pattern. As shown below:

Rectangle (box)

Q: What are the technical characteristics of the rectangle?

(1). Often happens when the price goes up or down, rarely at the top and bottom

(2). The price moves back and forth in a parallel box with support under pressure

(3). Rectangular volume changes: increase when rising, shrink when falling, and gradually shrink as a whole over time

(4). After the price effectively breaks through the upper or lower line of the rectangle, the rectangular shape is completed. The direction of the breakthrough is basically the direction in which the price will run in the future. The standard for effective breakthrough is generally to exceed 3% of the boundary line.

Q: What is the technical meaning of the rectangle?

(1). The rectangle that appears in the rising process, probably to choose to break up. Continue bullish after breakout, buy.

(2). Rectangles that appear in the process of falling, probably choose to break down, continue to be bearish after the breakthrough, and sell.

Q: Anything that user need to be note?

(1). The rectangle is a technical form of finishing, but the finishing is too long, or it happens to be in the top or bottom area. After finishing, the currency price does not break through in the direction of the previous trend, and the rectangle means that the trend has reversed.

(2). Most of the rectangular shapes of the turnaround can be regarded as a round top or a round bottom, or a double top or a double bottom. The bottom-turning rectangle with small up and down fluctuations is actually a latent bottom with a relatively short period, so the rectangle is still a technical pattern for finishing.

Q: Here is the disclaimer as usual.
A: Yes, here you go.

This article is for reference only.

Such information provided by Gate.io does not constitute any investment advice and is not responsible for any of your investments.

Regarding technical analysis, market judgment, trading skills, trader sharing, etc., may involve potential risks, investment variables and uncertainties.
This article does not provide or imply any opportunity to guarantee profits.

Q : Thank you, Let's go to question session.
Unbox Your Luck and Get a $6666 Prize
Register Now
Claim 20 Points now
New User Exclusive: complete 2 steps to claim Points immediately!

🔑 Register an account with Gate.io

👨‍💼 Complete KYC within 24 hours

🎁 Claim Points Rewards

Claim now
Language and Region
Exchange Rate
Go to Gate.TR?
Gate.TR is online now.
You can click and go to Gate.TR or stay at Gate.io.