Jiutian Triangle

Symmetrical Triangles

Symmetrical triangles can be characterized as areas of indecision. A market pauses and future direction is questioned. Typically, the forces of supply and demand at that moment are considered nearly equal. Attempts to push higher are quickly met by selling, while dips are seen as bargains. Each new lower top and higher bottom becomes more shallow than the last, taking on the shape of a sideways triangle. (It's interesting to note that there is a tendency for volume to diminish during this period.) Eventually, this indecision is met with resolve and usually explodes out of this formation (often on heavy volume.) Research has shown that symmetrical triangles overwhelmingly resolve themselves in the direction of the trend. With this in mind, symmetrical triangles in my opinion, are great patterns to use and should be traded as continuation patterns. (Chart examples of symmetrical triangle patterns using commodity charts.) (Stock charts.)

http://www.chartpatterns.com/symmetricaltriangles.htm

Bottom Triangle Wedge Chart Pattern

A Bottom Triangle/Wedge is considered a bullish signal, marking a possible reversal of the current downtrend.

Description

A Bottom Triangle/Wedge consists of a group of patterns which have the same general shape as Symmetrical Triangles, Wedges, Ascending Triangles and Descending Triangles. The difference is that the formations grouped together as this type are reversal and not continuation patterns. These patterns have two converging trendlines. The pattern will display two highs touching the upper trendline and two lows touching the lower trendline.

This pattern is confirmed when the price breaks upward out of the Triangle/Wedge formation to close above the upper trendline.

Volume is an important factor to consider. Typically, volume follows a reliable pattern: volume should diminish as the price swings back and forth between an increasingly narrow range of highs and lows. However, when the breakout occurs, there should be a noticeable increase in volume. If this volume picture is not clear, investors should be cautious about decisions based on this Triangle/Wedge.

http://www.trending123.com/patterns/Bottom-Triangle-Wedge-Chart-Pattern.html


Conclusion

Monitor the breakout direction.

Breakdown will be symmetrical triangle continuation pattern.

Breakout upwards will become Bottom Triangle Wedge Pattern.