Range◐ Heuristic
◆ The PatternHorizontal support and resistance — a consolidation box
The Rectangle is a horizontal consolidation range — price bounces between parallel support and resistance. It's a pause in the trend. Breakout direction usually follows the prior trend. The measured move is the rectangle's height.
Target = Breakout ± Height of rectangle
Can be traded internally (buy support, sell resistance) or by waiting for the breakout.
// Rectangle — horizontal range
Key insight: The longer a rectangle persists, the more significant the eventual breakout — energy is building up like a compressed spring.
Pattern bridge: Price oscillating between two fixed bounds is a uniform distribution in action. In ML, batch normalization constrains activations to a bounded range.