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How Do I Trade The Rectangle Stock Chart Pattern?The Rectangle stock chat pattern is a consolidation pattern. Meaning, the stock has stalled and is now in a sideways movement. When a trend line is drawn across the highs and one across the lows, they form parallel lines. Look at the chart below. 
This formation is considered a continuation pattern, but it can also be a reversal pattern. Always be sure you have confirmation of the breakout (volume spike, indicator, gap, etc.) Rolling Stocks Sometime stocks will stay in a sideways pattern. They will bounce off support, then advance until they hit resistance, and continue to repeat this pattern. These are called rolling stocks. You can buy at support and sell at resistance, until it finally breaks out of the pattern.
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