Vantage FX (www.vantagefx.co.uk) explore how Chart Patterns can be used in technical chart analysis to find support and resistance levels and possible price targets.
Rectangles
The Rectangle is a Chart Pattern that can be identified where price movement stays within a relatively tight area that fits inside a rectangle shape. Rectangles can give measurement objectives to traders when used with Fibonacci Projections. Rectangles can also offer support and resistance levels when prices move between the top and bottom lines of the Rectangle, however traders should always be aware that a breakout could occur.
