What is the Symmetrical Triangle
The Symmetrical Triangle is a multiple candlestick chart pattern that signifies the continuation of either an uptrend or a downtrend. This pattern consists of uncertain candlesticks in the middle.
Understanding the Symmetrical Triangle
The Symmetrical Triangle consists of multiple candlesticks that indicate the continuation of a trend. If the first candlestick is bullish, the final candlestick will also be bullish.
The inner candlesticks will follow a symmetrical pattern of uncertainty. If the first candlestick is bearish, the final candlestick will also be bearish, with the inner candlesticks in a symmetrical shape.
How to Trade Symmetrical Triangle Chart Pattern?
This pattern form triangle with upper resistance (upper red line) and bottom support (red doted line). In this case we have bullish trend, since this is continuation pattern we are looking to trade in trend direction (bullish or up trend).
Open buy position – When price broke resistance level (upper red line) and candlestick close above it we are going to open buy position.
Stop loss – To setup stop loss we should looking for placing it on safe place bellow support trendline (bottom red line on image above).