Forex Chart Patterns – Symmetrical Triangles Chart Patterns
Posted on 26. Jul, 2007 by admin in Forex Chart Patterns
The symmetrical triangle has two equal sides sloping towards each other at the same angle. It favors neither a downside nor an upside breakout. As a result, traders should look for it to signal a continuation of the move in the original direction; or, in other words, the move of the overall trend.
The trade signal provided by a symmetrical triangle should come as no surprise, since it is a rising support line and a descending resistance line converging as the chart moves to the right. Eventually one of these technical levels must be broken, at which point the trader operates just as if the line were a simple trend line. Breakouts from a triangle that has become narrow can be decisive, because buying or selling interest has accumulated while the price has consolidated.
