# SYMMETRICAL TRIANGLE PATTERN - ELF/BTC REVIEW đź“š

Education
BINANCE:ELFBTC   aelf / Bitcoin
Good day everyone.
Today I'll be discussing on symmetrical triangle patterns.
How it looks, builds up, and plays out.

1.DEFINITION
First of all, what is a symmetrical triangle?
A symmetrical triangle is a chart formation where the slope of the priceâ€™s highs and the slope of the priceâ€™s lows converge together to a point where it looks like a triangle.
Whatâ€™s happening during this formation is that the market is making lower highs and higher lows.
This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend.
If this were a battle between the buyers and sellers, then this would be a draw.
This is also a type of consolidation.
Symmetrical triangles can play out both ways - equilibrium consolidation (buyers = sellers).
This mean there's a possibility a breakout â¬†ď¸Ź and a breakdown â¬‡ď¸Ź.

2. ENTRY (TRIGGER ENTRY SIGNAL)
In a symmetrical triangle pattern , you're to trade the breakout or breakdown. So your trigger entry is basically when the inclined resistance (for a breakout â¬†ď¸Ź) or inclined support (for a breakdown â¬‡ď¸Ź) is broken by the market price.

3. TARGET (TAKE PROFIT)
Here, I'll be discussing on your profit target levels in the case of a symmetrical triangle pattern .
Basically your take profit levels should be where there's a high concentration of sellers ( sell orders ) or buyers (buy orders). And this is basically your resistance levels (in the case of a breakout) and your support levels (in the case of a breakdown). Further targets are the fibonacci extension levels (1 - 1.272 - 1.414).

4. STOP LOSS AND SETUP INVALIDATION
Stop loss and setup invalidation are quite similar terms but different.
Stop loss is simply a level where you cut your losses. It's like a breathing space for your trade. Your stop losses shouldn't be too tight ( to avoid being hit by stop loss hunting or market noise). It shouldn't be too far also (to give you a good risk to reward ratio (R:R)).
Setup invalidation is your last hope of validation. It's the last point that keeps a trade setup valid. When broken, the setup is invalidated ( no longer useful, you'll need to run another analysis).
Setup invalidation in a symmetrical triangle pattern is usually below the previous swing low ( for a breakout â¬†ď¸Ź) or the previous swing high (for a breakdown â¬‡ď¸Ź).
Note: Your stop loss can be less or equal to your setup invalidation, but not greater.

I'll be using my analysis on ELF/BTC as example of a symmetrical triangle pattern .
Trade entry (long order â¬†ď¸Ź) - Limit entry at the test of the symmetrical triangle's inclined support or price breakout above the symmetrical triangle inclined resistance as expected from my previous analysis.
- Target (take profits levels đźŽŻ): horizontal resistance / projected ascending channel resistance.
- Setup invalidation and stop loss: breakdown below the previous swing low.
Price brokeout as expected from my previous analysis and hit my targets.

That's that for symmetrical triangle pattern .

Thank you.

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