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ADA USDT - Symmetrical Triangle Breakout (Tutorial and Trade)

BINANCE:ADAUSDT   Cardano / TetherUS
~~SYMMETRICAL TRIANGLE BREAKOUT TRADE TUTORIAL~

This Cardano ADAUSDT setup gives us a text book example of a Symmetrical Triangle Breakout.
These chart patterns hit their target 69.5% of the time in bull markets.
A Symmetrical Triangle can be identified when price forms Lower Highs and Higher Lows.
Price action will occur between two sloping trend lines that eventually intersect.
This pattern is 30 days into forming, and we can measure 40 bars from beginning to apex.
Symmetrical Triangles will generally breakout at 73% pattern completion, so at 75% this is perfect.

Targets can be calculated one of two ways.

Method One: Subtract the Lowest Low from the Highest High in the formation.
Add this difference to the closing price of the candle that breaks out.
Price generally reaches the target within a month.

Method Two: Symmetrical Triangles can act like pennants and flags.
This means they can mark the half-way point for a larger market movement.
In that scenario, we can measure from the previous Swing Low to
the Swing High that begins the triangle.

Here is a chart example of Method Two, where the Symmetrical Triangle acts as the midpoint of a larger measured movement.


Rules for Trading Symmetrical Triangles

1. Symmetrical Triangles generally breakout in the direction of the trend. That is, if price was moving up before the triangle formed it is more likely to break to the upside.

2. Wait for the breakout! Always wait for the breakout. Once price breaks out, trade with the trend.

3. Watch for busted patterns. Sometimes, price can breakout in the opposite direction from which you intended. When this happens, watch to see if price reverses soon and begins heading in your original direction. Trading these setups can be profitable.

4. Watch for price to stall out in the direction of the breakout. If price struggles to get more than 5% away from the breakout,then consider exiting the trade and re-entering on greater volume or momentum.
When price stalls, it often reverses.

I hope you enjoyed this Symmetrical Triangle Tutorial and Cardano Trade Setup. Trade safely!
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Comments

This was written and explained, keep up the good work!
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@crobitDesign, Thank you!
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