How does Symmetrical Work?
Phase 1: Existing Uptrend
When there is an extreme demand in prices there is an uptrend. It continued as the demand increases.
Phase 2: Pause
When demand is equal to supply the there is a pause in an uptrend and investors start to book profits here. As prices consolidate it forms converging . As there is equal demand and supply investors buy on the lower and sell on the upper . Which results in forming a Symmetrical .
Phase 3: Uptrend Continuation
After demand matching the supplies when there is when buyers are again interested to buy demand increases. Which results in breakout! And the continuation of the uptrend.
Role of Volume:
plays a major role in a symmetrical . When in an uptrend the is quite higher. In the second phase, the starts to diminish due to equal demand and supply. And again on the breakout, the surges. with Breakout gives a good indication of a successful uptrend.
Above Chart Explanation:
This is a 4H chart of AXSUSDT we can see it's in an uptrend previously with good volumes. Now after successful uptrend prices consolidate with diminishing volumes. And after it, there is a breakout with above-average volumes. And then the uptrend continues.
Symmetrical is a continuation pattern. Which on upper breakout can give a potential bull move and when on lower breakout gives a possible bear move.
Comment your thoughts on Symmetrical down below.
This is just an educational post never trade just any pattern. And please do your research before making any trades.
PS: We are again publishing this for our Indian audience.