Symmetrical Triangle pattern in stock market formed when a stocks price vacillating up and down and covering towards a single point. Its back and forth oscillations will become smaller until the stock reach critical price, breaks out of the pattern, and moves drastically up or down. When investors are unsure of stocks value, The symmetrical triangle formed.
If jump UP, stock market will become BULLISH. If jump DOWN, stock market will become BEARISH.
To form Symmetrical Triangle pattern, draw two lines. First from top or high prices, second from bottom or low prices. That should form a triangle, where the peak is in the right side!!
Watch for :
1.Sideways movement before breakout. Break up=BULL. Break down=BEAR!
2.Watch The Volume, the greater the volume the greater certainty of successful!
3.You can sell or buy when it reaches 3 / 4 of the way from break point.
As with all patterns, knowing when to get out is as important as knowing when to get in. Your
target price is the safest time to sell, even if it looks like the trend may be continuing.
For symmetrical triangles, sell your stock at a target price of:
1.Entry price plus the pattern’s height for an upward breakout.
2. Entry price minus the pattern's height for a downward breakout
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