Symmetrical triangle occurs, when the price moves up and down and approaching to a common point. Movement will become increasingly smaller, until it reaches a critical value at which comes to breakthrough of sample lines, up or down.
Symmetrical triangle is formed, when there is uncertainty about the cost among investors. When it comes to breakthrough of sample lines, we can talk about the unification of expectations in terms of price, which can be seen as the creation of a new strong trend in either direction.
Symmetrical triangle pattern
To draw a symmetrical triangle, draw two approaching trend lines that connects the highs and the lowest values.
Using a symmetrical triangle
Symmetrical triangles are very reliable, they can make profit when the breakthrough occurs up or down. Pay attention, when you see the creation of a symmetrical triangle and a breakthrough, you can earn more.
Determine the level of the exit of position
For all the patterns it is very important to know, when to enter and when to exit a position. When it comes to breakthrough upwards, you can specify the exit level by using the value of the entry and add the height of the pattern. For the breakthrough downwards, use a value of entering position and subtract the height of the pattern.