What is a symmetrical triangle?
A bullish symmetrical triangle is a bullish continuation pattern. It occurs after a large run up in price and is similar to a pennant in appearance. The only difference is that a symmetrical triangle occurs over a longer time period. They should take about 3 weeks to form.
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.
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