Sp_Kimani

Trading a Rectangle chart pattern

Education
FX:EURUSD   Euro / U.S. Dollar
The EUR/USD daily chart above shows a perfect example of trading a rectangle given that the currency pair has been stuck in a rectangle since mid-August. The rule of thumb when trading a rectangle pattern is to sell at the top of the rectangle and to buy at the bottom. This strategy allows you to make profits from an asset that is stuck in a sideways trading range. However, you should always pay attention to the price action around the top and the bottom of the rectangle formation as the price could break out of the pattern and head higher or lower.
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