In the books, it is written that symmetrical triangles are formed because of uncertainty. The market is forming an opinion about the direction of the asset.
Moreover, it is said that symmetrical triangles have a higher probability of being a continuation pattern.
If we apply those learnings to PSX, we have the following analysis:
After an uptrend in prices, the market had some uncertainty about the direction of the asset. And, today's possible breakout confirms that symmetrical triangle have higher probability of being continuation pattern.
According to the books, this breakout closer to the apex of the pattern increases the chance of it failing. Moreover, symmetrical triangles are known to be less reliable patterns.
Therefore, such breakout suggests a continuation of the uptrend after a pause, however, we need to be more cautions and await a pssible failure.
Now, if it's not a false breakout, the highest probability is that prices will move quicly and with larger amplitue than the pattern itself. (100% form its base to its top).
Let's see!!
Moreover, it is said that symmetrical triangles have a higher probability of being a continuation pattern.
If we apply those learnings to PSX, we have the following analysis:
After an uptrend in prices, the market had some uncertainty about the direction of the asset. And, today's possible breakout confirms that symmetrical triangle have higher probability of being continuation pattern.
According to the books, this breakout closer to the apex of the pattern increases the chance of it failing. Moreover, symmetrical triangles are known to be less reliable patterns.
Therefore, such breakout suggests a continuation of the uptrend after a pause, however, we need to be more cautions and await a pssible failure.
Now, if it's not a false breakout, the highest probability is that prices will move quicly and with larger amplitue than the pattern itself. (100% form its base to its top).
Let's see!!