I'm back after Fabonacci I wrote a long time ago
(Look at my other posts...)
Symmetrical Triangle (hereafter STrgl), which is called symmetrical triangular convergence, is one of the two patterns of right-angled triangle that we have seen before, in which the ascending horizontal resistance line and the descending horizontal support line disappear.
A pattern that looks like an isosceles triangle because the angles and lengths of both sides of the triangle are similar.
At the time of initial formation, it continues to rise to its highs, and at some point, the selling pressure becomes stronger, and this selling pressure weakens the buying force and causes the price to fall.
At this time, swing traders who sensed the change in the trend joined this selling trend and increased selling pressure.
When it reaches a certain level (such as the previous support level or the sale level), a buying trend is attached and the price rises again, repeating this process, and the highs are lowered and the lows are higher.
Symmetrical triangular convergence is a form of convergence to a certain point.
The larger and narrower the pattern, the better the pattern is the same as any other pattern.
There is a wave form of rising/falling/rising/falling in the middle, so it can overlap with diamond pattern and Heschol, and since there is a form of convergence, diamond pattern formation should also be suspected.
If you always stick to one pattern, great things can happen, so it is only recommended to draw a lot, learn a lot, and experience a lot.
However, this pattern does not move as expected, and the movement after breaking through the general pattern is often not as good as expected.
pattern condition
1. Triangle shape: A triangle formed by an uptrend line that raises a low and a downtrend line that lowers a high meet at the apex on the right.
2. Intersection line within triangle: It is meaningful not to end with simply drawing a triangle, but to touch the resistance line and the trend line at least 2 times inside the triangle. The inside of the triangle must not be empty. When reading conservatively, the touch point of the pattern start point is excluded from the count reflection.
3. Trading volume: As a pattern is formed, the trading volume that goes downwards is preferred. not sufficient condition
4. Breaking through immaturity: Before the pattern matures (2/3~3/4 point), there is a case of giving a fake that breaks through and crawls back into the pattern. It is not easy for anyone to decipher whether the breakthrough is an old-fashioned group.
5. After breakout: After breakout, the trend is often in the direction of breakout.
Raising lows and dropping highs
Counting the number of touches on each triangle line segment
Check to see if they pass by crossing
It is good if the trading volume goes down as well.
trading strategy
1. Dimensions and TP
1) The height of the starting point of the pattern
2) The height between the starting point of the pattern and the first touched part of the lower trend line (conservative)
3) When combined with a pennant, TP as much as the height penetrating the triangle (in the case of a rising pennant, the upper line segment from the rising start floor / in the case of a falling pennant, the lower line segment from the falling start high point)
4) Up to the expected channel upper resistance line through additional drawing
TP adds/subtracts the height at the breaking point
2. Breakthrough position: Best if it breaks at 62% of the pattern (about 2/3~3/4) (it was an ideal position in my experience)
3. Waiting for breakthrough: Confirm candle closing after breakthrough
4. Retrieval check: If you miss in the confirmation section, check the reversion section and respond to the failure in the reversion section.
There is a way to proceed by comparing the starting point and the target height.
How can we infer the expected rise in this way?
Let's trade while keeping in mind that the basics of pattern trading is to check the overall trend and support/resistance first!
