Get started

Symmetrical Triangle

APOLLO HOSPITAL: Symmetrical Triangle The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape. Trend: In order to qualify as a continuation pattern, an established trend (at least a few months old) should exist. The symmetrical triangle marks a consolidation period before continuing after the breakout. Four (4) Points: We know that we need at least 2 points to form a trend line and to form a symmetrical triangle we need 2 trend lines . Therefore, a minimum of 4 points are required to begin considering a formation as a symmetrical triangle. The second high should be lower than the first and the upper line should slope down. The second low should be higher than the first and the lower line should slope up. Ideally, 5 points are enough to form a symmetrical triangle (2 on the upside trendline and 3 on the downside trendline) Volume: As the symmetrical triangle extends and the trading range contracts, volume should start to diminish. This refers to the quiet before the storm, or the tightening consolidation before the breakout. Duration: The symmetrical triangle can extend for a few weeks or many months. If the pattern is less than 3 weeks, it is usually considered a pennant . Typically, the time duration is about 3 months. Breakout Timeframe: The ideal breakout point occurs 1/2 to 3/4 of the way through the pattern's development or time-span. The time-span of the pattern can be measured from the apex (convergence of upper and lower lines) back to the beginning of the lower trend line (base). A break before the 1/2 way point might be premature and a break too close to the apex may be insignificant. After all, as the apex approaches, a breakout must occur sometime. Breakout Confirmation: A break should be on a closing basis for it to be considered valid. Some traders apply a price (3% break) or time (sustained for 3 days) filter to confirm validity. The breakout should occur with an expansion in volume , especially on upside breakouts. Return to Apex: After the breakout (up or down), the apex can turn into future support or resistance. The price sometimes returns to the apex or a support/resistance level around the breakout before resuming in the direction of the breakout. Price Target: There are two methods to estimate the extent of the move after the breakout. First, the widest distance of the symmetrical triangle can be measured and applied to the breakout point. Second, a trend line can be drawn parallel to the pattern's trend line that slopes (up or down) in the direction of the break. The extension of this line will mark a potential breakout target. TRADING STRATEGY: BUY ON CMP 4779 SL: 4648 TGT:4900-4950
NSE:APOLLOHOSPLong
by TradingSutra
ICICI BANK case studyICICI BANK SPOT CMP 917 Chart pattern study Time Frame :- 240 mins Symmetrical triangle pattern formation Bearish divergence on RSI with respect to price Suppy resistance zone around 922-936 levels View gets negated above 945 levels on closing basis Range of 922-936 should be used to exit long positions Fresh investment recommendation above 945 levels Down side 892 would act as intermediate support levels,, which can be considered as pivot levels, If counter falls below this levels, Bullish trend might end and retracement till levels of 842 can be seen. Time to take profits in your investments.
NSE:ICICIBANK
by RUDRA007
Banknifty view for 10 Nov ExpiryNSE:BANKNIFTY is Trading in a narrow price range from date 24 nov to 4 nov. 41,500 is crucial level for banknifty. Its a strong resistance or supply zone. Banknifty is trying to break this resistance. On Nov 1 it succeed to break resistance but not able to sustain. Also this level is tested for multiple times. On the other hand, 40850 is strong support. 2 times banknifty took support from that level and gone upside. Banknifty is curretly neither in Up trend nor in Down trend. Its just moving in between 41500 - 40850. we can say sideways. On longer time frame like daily or weekly we can clearly see an up trend. So if we get banknifty around 40850 and gives us a bullish confirmation we will think for Long (Bullish view) for target of 41100,41300 & 41500. If Banknifty breaks 41500 level and sustain above that we will surely go for Long (Bullish view) for target of 41700, 41800 & 42000. In worst case banknifty will break its support level 40850 and sustains below we can go for short(Bearish view) for target of 40600, 40500,40300. If we think logically, most of the major banks NSE:SBIN , NSE:AXISBANK , NSE:HDFCBANK , NSE:ICICIBANK having good quarterly earning report. FII have started buying recent. So we can expect a bullish move for upcoming days. But, we are close to all time high. Disclaimer : I am not SEBI registered analyst. Do your own analysis before taking trade. I am not responsible for your profit or loss.
NSE:BANKNIFTY
by AmeyKajarekar
1