What's Rectangle Consolidation Patterns?
Trading Identify a Rectangle Consolidation Pattern in XAUUSD Trading
The Best Patterns Guide for New Traders - How to Identify and Trade Rectangle Consolidation Chart Pattern
Pattern Setups for Day Trading - Patterns Guide
This Rectangle Consolidation patterns charts guide explains how to identify xauusd setups - identifying chart patterns is the first step when it comes to learning how to trade with Rectangle Consolidation chart patterns in Gold.
Rectangle Consolidation trading price setups commonly form on Gold charts & this chart pattern analysis guide explains how to trade & analyze charts using Rectangle Consolidation trading setups.
Rectangle Pattern
A Rectangle consolidation pattern is a range with narrow trading price action which forms a market consolidation period in Gold market. The trading range is defined by 2 parallel trend lines which are horizontal and show the presence of support & resistance. This pattern setup is plotted on a trading chart using a rectangle, hence, the name rectangle chart pattern.
For this rectangle consolidation pattern, xauusd trading price forms multiple highs & lows that can be then connected with horizontal trend lines which are parallel to each other. This pattern forms over an extended period of time giving the chart setup its rectangle shape.
A break out of trading price action from this rectangle consolidation chart pattern forms when either of the horizontal line is penetrated and the range signal of the rectangle is broken. An upside breakout of the rectangle consolidation chart pattern setup is a buy trade signal. A downside breakout of the rectangle consolidation chart pattern is a sell xauusd trade signal.
Rectangle Consolidation Pattern
Price Breaks-out the consolidation trading range after sometime and continues to move upward after an upwards Gold market break out.
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