The Symmetrical Triangle is a contraction pattern and can take months to form.
The sides of the triangle slope equally (symmetrical)
The triangle has lower highs AND higher lows – at least two of each to each trendline, a squeezes in to the apex of the triangle. Price cannot be squeezed forever.
This means volatility in the market is shrinking and a sign the secrity is likely to break the pattern, soon. Just no way to know for sure which way, unfortunately. Retests of the structure are commone after the break.
You can guesstimate where this will go by taking the wide end of the triangle and adding it (either up or down) to the apex of the structure where it decides to break out (or move your line using the magnet)
No recommendation.
The sides of the triangle slope equally (symmetrical)
The triangle has lower highs AND higher lows – at least two of each to each trendline, a squeezes in to the apex of the triangle. Price cannot be squeezed forever.
This means volatility in the market is shrinking and a sign the secrity is likely to break the pattern, soon. Just no way to know for sure which way, unfortunately. Retests of the structure are commone after the break.
You can guesstimate where this will go by taking the wide end of the triangle and adding it (either up or down) to the apex of the structure where it decides to break out (or move your line using the magnet)
No recommendation.