Symmetrical Triangles Keep The Profits Coming
Symmetrical Triangle is a chart used by forex trader in technical analysis this is recognizable by its distinct shape that are formed during a trend as a consecutive format. The pattern draws two trend lines that show lower highs or higher lows, and when the lines are drawn, it'll take shape and comes to a point.
The longer it takes to form the valid the pattern is.
Though symmetrical triangles are said to be highly reliable and are being used within major trends, it is still seen as an area of uncertainty by the forex traders. While supply and demands seem to be balanced symmetrical triangles form when there are attempts on pushing higher by selling, at the same time dips are seen as buying opportunity.
Whenever the prices break either up or down uncertainty about the market is met and symmetrical triangles usually determine themselves in the course of a major trend just like a continuation pattern.
Studying the Break
Using some filters to trade symmetrical triangles is essential, it helps weed out "false break" and could use to decide whether to take trade or not. Filters help narrow down the trader's. So effective that it is said to be the most precise indicator in the market.
To spot the best formation for an explosive move;
1. When the stochastic turns bullish or bearish by a cross line in the path of the break with bullish variance.
2. A pick up in trading volume once prices starts to break.
For most of forex traders Symmetrical triangle is said to be one of the most effective and reliable continuation patterns that offers great chances of spotting profitable trades once the break occurs... so great it can be dramatic.