Profitable chart patterns every crypto trader needs to know, part 1 symmetrical triangle pattern
Chart patterns are geometric shapes found in the price data that can help a trader understand the price action, as well make predictions about where the price is likely to go.
Not knowing what chart patterns are forming can be costly because you are completely unaware of what is forming on the charts and the patterns the chart is signaling.
The symmetrical triangle chart pattern is a continuation pattern therefore it can both a bullish or bearish pattern.
What does this mean? Well, if you see this pattern in an uptrend, expect a breakout to the upside.
- Price trend moving up or down and converging to a single point
- A minimum of two troughs and two peaks to draw the two trend-lines on both sides
Here’s an example
How to trade the symmetrical triangle
Watch the symmetrical triangle form and wait for the breakout to happen. If a candlestick has broken the triangle start to build a position as the price is breaking out and use a chart stop loss at or below the symmetrical triangle in case of a false breakout, thereby minimizing loss. Maximize returns consider profit taking level before putting on position in order to understand the risk / reward ratio of the trade.
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