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What's Rectangle Consolidation Patterns?

Trading Identify a Rectangle Consolidation Pattern in XAU USD Trading

The Best Patterns Lesson Guide for Beginners - How to Identify & Trade Rectangle Consolidation Pattern

Patterns for Intraday Trading - Patterns Guide

This Rectangle Consolidation patterns charts guide explains and describes 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 price setups commonly form on XAUUSD charts & this chart pattern analysis guide explains and describes 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 formation is plotted on a 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 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 up side breakout of the rectangle consolidation chart pattern formation is a buy trade signal. A down-side breakout of the rectangle consolidation chart pattern is a sell xauusd trade signal.

What is Rectangle Consolidation Patterns? - How Do I Identify a Trading Rectangle Consolidation Pattern?

Rectangle Consolidation Pattern

Price Breaks-out the consolidation range after sometime and continues to move upward after an upwards Gold market break out.

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