7/13/2020 Symmetrical Triangles

Commodity Charts Examples Stock Charts Examples

Symmetrical triangles can be characterized as areas of indecision. A market pauses and

future direction is questioned. Typically, the forces of supply and demand at that moment
are considered nearly equal. Attempts to push higher are quickly met by selling, while dips
are seen as bargains. Each new lower top and higher bottom becomes more shallow than the
last, taking on the shape of a sideways triangle. (It's interesting to note that there is a
tendency for volume to diminish during this period.) Eventually, this indecision is met with
resolve and usually explodes out of this formation (often on heavy volume.) Research has
shown that symmetrical triangles overwhelmingly resolve themselves in the direction of the
trend. With this in mind, symmetrical triangles in my opinion, are great patterns to use and
should be traded as continuation patterns. (Chart examples of symmetrical triangle patterns
using commodity charts.) (Stock charts.)

Futures and options trading carries significant risk and you can lose some, all or even more
than your investment.

Stock trading involves high risks and you can lose a significant amount of money.

The information contained here was gathered from sources deemed reliable, however, no
claim is made as to its accuracy or content. This does not contain specific recommendations
to buy or sell at particular prices or times, nor should any of the examples presented be
deemed as such. There is a risk of loss in trading futures and futures options and stocks and
stocks options and you should carefully consider your financial position before making any
trades. The reference to statistical probabilities does not pertain to profitability, but rather
to the direction of the market. The size and the duration of the markets move, as well as
entry and exit prices ultimately determines success or failure in a trade and is in no way
represented in these statistics. This is not, nor is it intended to be, a complete study of chart
patterns or technical analysis and should not be deemed as such.

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