This model of a symmetrical triangle figure is very common when trading on charts, which does not have a pronounced direction, as it is characterized by a balance between . The figure is formed of two converging lines (resistance line and support line). The intersection of these lines is called the top of the triangle. The amplitude of fluctuations within the figure decreases, as indicators of trade gradually decrease. Pay attention to the graph as the decreases to the narrowest part, where bears or bulls will be decided to win. lines have equal angles of inclination. This triangle shape resembles an isosceles triangle when the bisector divides it exactly in half.
To understand which direction the price will go with a greater degree of probability, you need to take into account such features about the time of the formation of the figure:
1) most likely, the price will break through the support / and go in the direction of the trend. This is in most cases.
2) if inside the symmetric triangle (component of the wave of the triangle) the price increase is accompanied by an increase in indicators, then it is most likely that the figure will be broken up. And vice versa, if inside a symmetrical triangle a price drop is accompanied by an increase in indicators, then most likely the figure will be broken down. Do not forget to look in the tape of sales.
3) the proximity of significant levels of support / resistance can also affect the direction of price movement.
After breaking the Symmetric triangle up and down, the price usually goes in the direction of breaking through a distance at least equal to the distance to the height, the widest part of the figure.
If, for example, this symmetrical triangle breaks down, then the level of about $ 7,000 is very important; if we break it, then formation 3 of the “Bear Measured Movement” cycle is finally confirmed. See this idea for more details.
Since the birth of BTC, the global trend is upward.
The trend over the past 2 years (from the peak of $ 20,000) is a downtrend.
The existing trend for half a year is an uptrend.