Symmetrical Triangle Trade setup

how to trade symmetrical triangle like a PRO!

In today’s market update we are seeing the formation of a Symmetrical triangle pattern, but what is this pattern and how can you trade it?

Here is a quick breakdown of this pattern and trade setup ideas for it.

The symmetrical triangle represents price consolidation when the price starts moving in a range governed by a top and bottom trendline.

Is it Bullish or Bearish?

A symmetrical triangle can be both bullish and bearish as a possibility of both breakout or breakdown can occur. It needs to be watched carefully to build a proper trade.

Let us take an example from the above figure, we see the formation of a Symmetrical triangle.

Points A & C are bottom trendlines and B & D are top trend lines, at the current time we can expect a breakout or breakdown. Here is how you form a trade for it.

To accurately identify whether we will go up or breakdown we use Symmetrical triangle with other indicators.

Here we build a long position after few candles for the following reasons-

• An increase in volume supports the upward trend.

• 20MA (orange line) was broken, whenever this happens a volatile move chance gets increased. It also acts as a Support/Resistance hence resistance is being broken too.

• RSI forms a bullish confirmation.

These indicators combined with the symmetrical triangle point towards a breakout.

It is also important to wait for a retest to minimize risk although it won’t always happen.

Let us see how the price works out-

Here is the chart after a few more candles, we can observe the following things-

• 20MA worked as a good breakout zone.

• RSI worked out perfectly.

• The move was on the upside but was not too profitable.

• The stop-loss zone worked out well.

• Volume came in at the breakout point as many traders identified the pattern and buy pressure increased.

You can pair ST with other indicators of your choice also. Now Trade it with the current BTC chart to create a good trade setup and share it with me on Twitter.