Symmetrical Triangle Chart Pattern Video Lecture | Chart Pattern Trading: Learn the Fundamentals - Business Basics

good afternoon everyone this is
Christian with perfect stock alert calm
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please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that okay today we're going to
looking at the symmetrical triangle and
this is a continuation signal or a
reversal signal some of argue that 75%
of them are actually continuation
signals and the remaining 25% would be
the other I don't know whether that's
true or not but it's something for you
to think about here when you're looking
at this like I said you can see this in
an uptrend or downtrend it can be a
reversal or continuation signal in this
particular case we have a reversal
signal or it could be considered a
longer-term continuation to go of a
longer-term downtrend
what would it do here is draw this out
for you've got to have at least two
points or total for but two points for
the bottom trendline it's going to be
drawn out and you prefer three but or
more but you know you can do it with
just two and at least two on the
resistance level two high points you
draw your trendline across all right and
you'll notice it starts to form this
symmetrical triangle and that's
basically the gist of it is not a lot to
it the catch here is you do not want to
guess which direction it's going to
break because like I said it can be
either or reversal or continuation
signal so don't try to guess wait for
price activity to break through one of
the resistance or support lines and that
will give you the actual signal which
direction it's going to go in this case
it broke to the downside being price
close below this support line sometimes
you'll have a test where prices will
jump back up there and test that support
line save is now acting as resistance
you kind of got a little bit of that but
not too much and then you start moving
lower again when you get that secondary
jump back up there that's your
opportunity to get on on the short side
or get out if you didn't realize what
was going on your long so that's a
secondary opportunity it's a lot better
to trade it that way as opposed
- seen this formation set up and then
think along I think it's going to go
this where I think is going to that way
you don't really know so just wait let
the chart tell you which way it's going
to go the symmetrical triangle is also
known as a coil
it's basically volatility decreasing
note the substantial move here starting
to decrease in size and it's just
coiling preparing for something the
quiet before the storm if you will also
you will find low volume during that
time period is quite common however on
the breakout whether up or down you do
want to see substantial volume
especially if you're breaking to the
upside without substantial volume
supporting it it's likely to be a false
breakout and that happens a lot with
symmetrical trials especially the longer
term once clean this up a little bit the
symmetrical trial can last for weeks to
months but if it's less than three weeks
people typically consider it a pennant
in any event you should again I want to
really warm people don't try to predict
which way it's going to go or how long
it's going to last let it show you there
are two separate ways for gauging or
getting a target for how low or how high
you expect price to go once it's broken
out in this case we're looking at a
breakdown so we're looking to figure out
how low will price go before it stops
the first method would be to take the
high point here a price and bring it
down to the trendline of the sport and
take that distance from the breakout
would be your target however in this
particular case it was way off base
another method would be to take the up
resistance line and use a parallel of
that just draw it out from that last
point and that gives you a target again
these are just targets not exact science
this one came a lot closer than this one
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