The Symmetrical Triangle
The symmetrical triangle is formed when the market makes lower highs and higher lows and is commonly associated with directionless markets as the contraction of the market range indicates that neither the bulls nor the bears are in control. If this pattern forms in an uptrend then it is considered a continuation pattern if the market breaks out to the upside and a reversal pattern if the market breaks to the downside. Similarly if the pattern forms in a downtrend it is considered a continuation pattern if the market breaks out to the downside and a reversal pattern if the market breaks to the upside.
The image below illustrates.
Read more about this topic: Triangle (chart Pattern)
Famous quotes containing the word symmetrical:
“The symmetrical piles of white bodies,
the round white breast-shapes of the heaps,
the smell of the smoke, the dogs the wires the
rope the hunger. It had happened to others.
There was a word for us. I was: a Jew.”
—Sharon Olds (b. 1942)