The symmetrical triangle is mainly considered to be a continuation pattern that signals a period of consolidation in a trend followed by a resumption of the prior trend.
It is formed when investors are unsure of a stock’s value. Once the pattern is broken, investors jump on the bandwagon, shooting the stock price north or south.
break in the opposite direction of the prior trend should signal the formation of a new trend.
So keep both trends in mind for break out or break down .
It is formed when investors are unsure of a stock’s value. Once the pattern is broken, investors jump on the bandwagon, shooting the stock price north or south.
break in the opposite direction of the prior trend should signal the formation of a new trend.
So keep both trends in mind for break out or break down .