Symmetric Triangle Chart Pattern Analysis - Symmetric Triangle Pattern

Symmetric Triangle Chart Pattern Analysis - Symmetric Triangle Pattern.

The symmetric triangle pattern represents the area of indecision where the movement direction is questioned. Chart Pattern Analysis usually considered symmetric triangle chart pattern as continuation formation and resolves in direction of larger trend but also it may mark the trend reversal. Volume diminishes during the formation and explodes at breakout. After breakout (similar to rectangle) support may turn into potential resistance and visa versa.
Tips:
# 1 As continuation pattern symmetric triangle usually appears within the young trend characterizes by natural long-term indicators and overbought/oversold short-term indicators. Symmetric triangle reset short-term indicators to natural and then continues movement in parent's direction.
# 2 As reversal formation symmetric triangle chart pattern appears in mature trend characterized by overbought/oversold long-term and short-term indicators. This situation usually generates divergence on long-term indicators. For the best results symmetric triangle pattern should be considered together with other chart pattern analysis, technical analysis signals and technical trading techniques.
Estimated Target: the main trend support/resistance line.