How To Trade Symmetrical Triangles
A symmetrical triangle chart pattern is one of the most important continuation patterns, it can either be bearish or bullish pattern, when ever traders see the patterns forming then they know it is now time to take much larger and longer positions.
How to Draw the Triangles on the Charts
- You have to notice when the price is moving up and down but converging to a single point normally it does this when its consolidating.
- In most cases there is three peaks or more but all you need is a minimum of two peaks and two troughs in able to draw trendlines on both sides.
- When you draw lines then wait for it, it wont be long before the price breaks out of the pattern going up or downwards.
How to trade the triangles
You can opt for trading the breakouts , the best way possible is to confirm that the breakout actually first happens before placing your order. Check out for a 30 minute candle it must close outside the triangle before you enter the market by execution this will help you if it is a false break out. When you trade the breakout often the candlesticks are long and sometimes not sustainable.
You can trade the retest of the line that has been broken, wait patiently for a retest then you enter at least you will be positive that the market is either moving upwards or downwards. This becomes a tricky trade if the breakout was long the market is not likely to retest back to the trendline.