Symmetric triangles are a well known pattern, in which price forms lower highs and higher lows following two sloping trend lines that eventually intersect.
According to Bulkowski identification guidelines, we should be looking for
-duration of 3 weeks minimum
-volume decreasing throughout formation
-price touching both sides of the formation boundaries several times
In case of an upwards breakout, which is quite probable in a bull market, we should add the height of the formation to the price breakout to set our target price, and SL below the down limit of the triangle.
Let's see how it plays out!
According to Bulkowski identification guidelines, we should be looking for
-duration of 3 weeks minimum
-volume decreasing throughout formation
-price touching both sides of the formation boundaries several times
In case of an upwards breakout, which is quite probable in a bull market, we should add the height of the formation to the price breakout to set our target price, and SL below the down limit of the triangle.
Let's see how it plays out!