Symmetric Triangle Chart Pattern Analysis - Symmetric Triangle Pattern.
triangle pattern represents the area of indecision where the movement direction is
questioned. Chart Pattern Analysis usually considers a symmetric triangle chart pattern as a continuation
formation which resolves in the direction of a larger trend, but it may also mark the
trend reversal. Volume diminishes during the formation and explodes at the
breakout. After breakout (similar to rectangle), support may turn into potential
resistance and vice versa.
# 1 As a continuation pattern, the symmetric triangle usually appears within
a young trend characterized by neutral long-term indicators and
overbought/oversold short-term indicators. The symmetric triangle resets short-term
indicators to neutral and then continues movement in parent's direction.
# 2 As a reversal formation, the symmetric triangle chart pattern appears in a mature trend
characterized by overbought/oversold long-term and short-term indicators. This
situation usually generates divergence on long-term indicators. For the best results, the symmetric triangle pattern should be considered together with other chart pattern analysis, technical analysis signals and technical trading techniques.
Estimated Target: the main trend support/resistance line.
Stock Chart Patterns.
Price chart is the result of activity of all market
participants. It reflects periods of high expectations,
greed and fear. As most emotional human activities, it
presents different patterns. Chart analysis and pattern recognition provide
useful information for technical analysis, trend analysis and market
timing signals for technical trading.
Trendlines and chart patterns can be analyzed in different time
frames: from intraday, daily and weekly frames, up to
multi-year patterns. It is the best practice to
analyze patterns in conjunction with other technical
Each price pattern is formed by several smaller sub
waves. At least 3 – 4 sub waves are required to perform
a reliable pattern screening. We use minimal required number of sub
waves for an earlier pattern recognition screener. On the other
hand, pattern formed with more sub waves is more