stephenleachman

SYMMETRICAL TRIANGLE (TREND REVERSAL)

FX:AUDJPY   Australian Dollar/Japanese Yen
65 0 15
The symmetrical triangle as in all triangle patterns can be used as trend
reversals. It must be noted that the symmetrical triangle must form at a
key level of support or resistance.This pattern forms as price pushes
into support or resistance and then consolidates making lower highs
and higner lows forming the symmetrical triangle, Once price breaks
the triangle conforming the reversal, I personally always wait for a
pullback to the previous highs or lows to see if price will be resisted
or supported before taking a reversol trade. There are different
methods Like Fibonacci Retracements to find targets after a confirmed
reversol but I will lay out the conventional way which is the Distance
Between The Mouth Of The Triangle Added To The Breakout.

Conventional Way To Terad The Symmetrical Triangle Reversal:

snapshot

-----Bearish Reversal-----
(1) Wait for price to push into key resistance.
(2) Wait for price to consolidate at that resistance forming a symmetrical triangle.
(3) Wait for price to break and close below prior low.
(4) Sell pullback at prior low. (Sometimes the pullback stretches to the point of triangle)
(5) Stop Above the previous Highs.
(6) Target Is the Distance Between The Mouth Of The Triangle Added To The Breakout.

-----Bullish Reversal-----
(1) Wait for price to push into key support.
(2) Wait for price to consolidate at that support forming an Symmetrical triangle.
(3) Wait for price to break prior highs.
(4) Buy pullback at prior highs. (Sometimes the pullback stretches to the point of triangle)
(5) Stop Below the previous Lows.
(6) Target Is the Distance Between The Mouth Of The Triangle Added To The Breakout.
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