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Technicals

Line Formation

A horizontal chart pattern, commonly referred to as a "rectangle", is characterized by a tight price range and minimal price swings. This creates a line that can be drawn across the chart, hence the name. This pattern signifies a balance between supply and demand, making the eventual breakout a significant indicator of the next move's direction.

Related terms

Divergence

Understand the meaning and definition of Divergence in the context of stock market, trading, and investments.

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Random walk theory

Understand the meaning and definition of Random walk theory in the context of stock market, trading, and investments.

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Noise

Understand the meaning and definition of Noise in the context of stock market, trading, and investments.

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Stochastic oscillator

Understand the meaning and definition of Stochastic oscillator in the context of stock market, trading, and investments.

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Williams %R

Understand the meaning and definition of Williams %R in the context of stock market, trading, and investments.

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