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Symmetrical Triangle (Continuation) - ChartSchool - StockCharts

Symmetrical Triangle (Continuation) - ChartSchool - StockCharts

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18/2/2014 Symmetrical Triangle (Continuation) - ChartSchool - StockCharts.com 1/4 StockCharts.com - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: StockCharts.com » ChartSchool » Chart Analysis » Chart Patterns » Symmetrical Triangle (Continuation) Advertisement Symmetrical Triangle (Continuation) The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape. You could also think of it as a contracting wedge, wide at the beginning and narrowing over time. While there are instances when symmetrical triangles mark important trend reversals, they more often mark a continuation of the current trend. Regardless of the nature of the pattern, continuation or reversal, the direction of the next major move can only be determined after a valid breakout. We will examine each part of the symmetrical triangle individually, and then provide an example with Conseco. 1. Trend : In order to qualify as a continuation pattern, an established trend should exist. The trend should be at least a few months old and the symmetrical triangle marks a consolidation period before continuing after the breakout.
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18/2/2014 Symmetrical Triangle (Continuation) - ChartSchool - StockCharts.com 2/4 2. Four (4) Points : At least 2 points are required to form a trend line and 2 trend lines are required to form a symmetrical triangle. Therefore, a minimum of 4 points are required to begin considering a formation as a symmetrical triangle. The second high (2) should be lower than the first (1) and the upper line should
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  • Spring '12
  • RamonBrunoTulibasJr.
  • Breakout, Conseco, symmetrical triangle

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