Rectangle

A sideways range between a horizontal resistance and a horizontal support, each tested several times.

A rectangle is a pause in which buyers and sellers trade within a flat range. Classical chartists (Schabacker, Edwards & Magee) regard it as one of the most reliable patterns, because both boundaries are horizontal and easy to define. A break in the direction of the prior trend (a breakout after a rise, a breakdown after a fall) makes it a continuation; a break against it makes it a reversal. Double tops and bottoms are treated here as rectangle reversals ("rectangle top" / "rectangle bottom"), which is how Aksel Kibar records them.

Wide, loosely tested ranges are common in crypto; many breakouts and breakdowns fail and close back inside the range.

How we define it

Boundary that breaks: a best-fit horizontal level through at least 3 swing tests (2 on 1W), retested late in the pattern; no close beyond it before the breakout or breakdown
Opposite boundary: horizontal, tested at least twice across the range
Price swings between the top and bottom quarters of the range at least 3 times (sideways, not a rounding turn)
Minimum length: 2 months on 1D, 3 months on 1W, 10 days on 4H (from the first boundary test to the breakout or breakdown)
Breakout (up) / breakdown (down): the first candle close above the upper boundary or below the lower boundary by at least 3% on 1D and 1W (1.5% on 4H), following Edwards & Magee
Failed breaks: a breakout or breakdown that closes back inside the boundary within 6 candles on 4H, 5 on 1D or 3 on 1W is removed from the list
Trend filter: breakouts only above the 200-period EMA (40-week EMA on 1W), breakdowns only below it
Watchlist: the pattern meets the length and test rules, has not broken yet, and price is within 3% (or 1 ATR, at most 6%) of the boundary