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How do I trade the Symmetrical Triangle Pattern?The Symmetrical Triangle stock chart pattern is a continuation pattern 75% of the time and a reversal pattern only 25% of the time. It forms a triangle the is symmetrical in shape, not sloping upward or downward. Look at the chart below.
This stock stalled and began a series of lower highs and higher lows. When a trend line is drawn to connect the highs and another connecting the lows, it forms a triangle that is symmetrical in shape. After breaking out of the trend line, the price retested the trend line. The trend line that had acted as resistance, now has become support. The direction of the breakout was not truly confirmed until the it made a strong move up. Many times the price will return to test the support line, It's a good idea to wait for conformation, strong move, gap, volume spike, etc. Stock Investing Basics A good stock market trading tip is to use Japanese Candlestick Charts. Learn to identify the different candlestick patterns and your trading success rate will improve. You can use it with a specific strategy, like the
OBVious Breakout Strategy,
or with patterns, it can improve your trading.
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