The rectangle chart pattern goes by many names. A rectangle pattern is simply a trendless price channel created when price action reaches two identical, or nearly identical, highs and lows. This is also called a congestion zone, consolidation area or trading range. Ideally, the highs and lows alternate, though this is not necessary. The matching highs form a resistance level and the lows a support level. Price action oscillates between these limits until it finally breaks out either high or low.
Duration: Rectangles can extend for a few weeks or many months. If the pattern is less than 3 weeks, it is usually considered a flag, also a continuation pattern. Ideally, rectangles will develop over a 3-month period. Generally, the longer the pattern, the more significant the breakout. A 3-month pattern might be expected to fulfill its breakout projection. However, a 6-month pattern might be expected to exceed its breakout target. Reference
In a nutshell, it is rather unusual for a rectangle pattern to last more than six (6) months. This happens to be the case for Kian Joo Can Factory Bhd, whereby its rectangle pattern has lasted since mid 2013 till present. One should wonder what is going on with this company?
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