This is also a type of consolidation.Symmetrical Triangle in the chart, we can see that neither the buyers nor the sellers could push the price in their direction. When this happens we get lower highs and higher lows.
As these two slopes get closer to each other, it means that a breakout is getting near.
We don’t know what direction the breakout will be, but we do know that the market will most likely break out. Eventually, one side of the market will give in.
We can place entry orders above the slope of the lower highs and below the slope of the higher lows of the symmetrical triangle.
Since we already know that the price is going to break out, we can just hitch a ride in whatever direction the market moves.
So, I enter with target 3750
As these two slopes get closer to each other, it means that a breakout is getting near.
We don’t know what direction the breakout will be, but we do know that the market will most likely break out. Eventually, one side of the market will give in.
We can place entry orders above the slope of the lower highs and below the slope of the higher lows of the symmetrical triangle.
Since we already know that the price is going to break out, we can just hitch a ride in whatever direction the market moves.
So, I enter with target 3750
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.