What is a symmetrical triangle?
volumethe volume on a symmetrical triangle pattern has an unique pattern. It should decrease during the time when the symmetrical triangle is being formed. Like always heavy volume should be present when a breakout occurs. target the target of the symmetrical pattern is said to be found by measuring the distance between the top and bottom of where the pattern started. In this example the top is $13.7 and the bottom is $11. So, we would expect the stock to go up around $2.7 above resistance. Resistance in this example was $12.7 so our target was $15.4. This stock overshot that a little bit. trading the pattern Many professional traders will buy this stock during a breakout. They will also put a stop somewhere under the resistance. Professional traders also look at the target and their risk. Trading only makes sense if the amount of money that you risk vs the amount of money that you stand to make also makes sense. This pattern may be a stand along pattern for aggressive traders but more conservative traders may want to combine it with other indicators or wait for another close above the breakout point before getting in. Other Chart Patterns Learning different chart patterns can help you to understand how the market works and how to trade it. Here are a few other chart patterns to look into. Bullish Pennant Chart Pattern – A similar pattern, only with a shorter time frame. Ascending Triangle - This is a bullish pattern that can occur over short or long time periods. Bull Flag - A common bullish chart pattern.
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