Forex technical pattern analysis: symmetrical triangle pattern
Symmetrical Triangle (Symmetrical Triangle) is also known as equilateral triangle. Under normal circumstances, symmetrical triangle is a sorting form, that is, the price will continue to move in the original trend. It is composed of a series of price changes, and the amplitude of the change gradually narrows, that is, the highest price of each change is lower than the previous level, and the lowest price is higher than the previous lowest price level, showing a compressed graph, and It finally intersects at one point.
During the formation of the pattern, the price highs in the market kept pushing down, while the lows kept rising. This means that neither the buyer nor the seller has the ability to push prices in a certain direction.
This is a battle between the buyer and the seller, so the market saw the saw market.
Symmetrical triangles are also a sorting form.
As shown in the figure above, we can see that neither the buyer nor the seller can push the exchange rate to fluctuate in the direction they want to see. When this happens, the exchange rate will appear to be continuously high and low.
As the upward slash and the downward slope gradually gather towards one point, this means that the market’s breakthrough market is getting closer and closer. We do not know the direction of the exchange rate’s breakthrough, but we do know that the market is very likely to open a breakthrough market. Eventually, one of the buyers and sellers will surrender.
So, how can we use this graphical trend to trade?
We are able to set our own stop entry order above the downward slope and below the downward slope. In view of the fact that we already know that the exchange rate is about to break through, we only need to “ride on the way” in the direction of the exchange rate.
In this example, if we set our own stop loss order above the downtrend line, we may have obtained a relatively good return.
If you set your own stop loss order below the upper slash, as long as the first order has been executed, you can choose to cancel the order.