Symmetrical triangle pattern in an uptrend "Bullish"
Triangles are areas of indecision. The market pauses and the direction is
questioned. Typically, the forces of buyers and sellers are equal. The following
is a typical symmetrical triangle pattern:
1. Buyers try and push the
price higher but are met by sellers, while the dips are seen as bargains.
2.Each new lower top and higher bottom becomes more shallow than the last,
taking shape of a sideways triangle.
3.Eventually, the indecision is met with resolve and usually explodes out of
this formation. Volume usually increases during this period.
The opposite of the above is a
symmetrical triangle pattern in an downtrend. "Bearish"
Symmetrical triangle pattern in a downtrend