A symmetrical triangle breakout is a common pattern in technical analysis. Here’s a quick overview:
Symmetrical Triangle Pattern
Formation: This pattern forms when the price of a stock consolidates, creating two converging trend lines with opposite slopes. These trend lines connect a series of sequentially lower peaks and higher troughs1.
Indication: It represents a period of consolidation before the price breaks out, either upwards or downwards1.
Breakout: The direction of the breakout (above the upper trend line or below the lower trend line) indicates whether the trend will be bullish or bearish1.
Trading the Breakout
Bullish Breakout: If the price breaks above the upper trend line, it signals a potential upward trend.
Bearish Breakout: If the price breaks below the lower trend line, it indicates a potential downward trend.
Symmetrical Triangle Pattern
Formation: This pattern forms when the price of a stock consolidates, creating two converging trend lines with opposite slopes. These trend lines connect a series of sequentially lower peaks and higher troughs1.
Indication: It represents a period of consolidation before the price breaks out, either upwards or downwards1.
Breakout: The direction of the breakout (above the upper trend line or below the lower trend line) indicates whether the trend will be bullish or bearish1.
Trading the Breakout
Bullish Breakout: If the price breaks above the upper trend line, it signals a potential upward trend.
Bearish Breakout: If the price breaks below the lower trend line, it indicates a potential downward trend.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.