THE SYMMETRICAL TRIANGLE CHART PATTERN.
Symmetrical triangles, sometimes called coils, are a popular chart pattern because they appear often and perform reasonably well in a bull market.
Price trend can be any direction leading to the chart pattern.
Shape looks more triangular. Prices move between two converging trendlines. Two trendlines bound prices; the bottom trendline slopes up and the top one slopes down. Price must cross the pattern from side to side, filling the triangle with price movement, not white space.
Price must touch each trendline at least twice, forming distinct valleys and peaks.
Breakout upward 54% of the time and 46% of the way for downward breakouts.
support and resistance lines merge. Symmetrical
triangle tops have prices that trend up to the formation, whereas bottoms have prices leading down.
With this entry rule, we always wait for a breakout of the market. We check the price pattern for at least three peaks or valleys touched by the support or resistance line. The breakout has to occur right through either the support or the resistance line.
We advise all traders to wait for directional breakout before taking any position as we will update the chart to identify the breakout.
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
Symmetrical triangles, sometimes called coils, are a popular chart pattern because they appear often and perform reasonably well in a bull market.
Price trend can be any direction leading to the chart pattern.
Shape looks more triangular. Prices move between two converging trendlines. Two trendlines bound prices; the bottom trendline slopes up and the top one slopes down. Price must cross the pattern from side to side, filling the triangle with price movement, not white space.
Price must touch each trendline at least twice, forming distinct valleys and peaks.
Breakout upward 54% of the time and 46% of the way for downward breakouts.
support and resistance lines merge. Symmetrical
triangle tops have prices that trend up to the formation, whereas bottoms have prices leading down.
With this entry rule, we always wait for a breakout of the market. We check the price pattern for at least three peaks or valleys touched by the support or resistance line. The breakout has to occur right through either the support or the resistance line.
We advise all traders to wait for directional breakout before taking any position as we will update the chart to identify the breakout.
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.