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Symmetrical Triangle

Nifty Symmetric Triangle PatternNifty has been trading in an range since December with top 11000 and bottom 10330. It has formed a symmetric triangle in daily charts and head and shoulders on weekly charts. Breakout or breakdown in such scenario has to be big. Further movement will be confirmed basis the closure above 10940 or below 10584. Trading below the bullish trendline (green) may make nifty see lower levels. Apart from this weekly charts also sees a head and shoulder pattern which was published earlier. Stay cautious with your positions. Hedge it properly if you are long or short.
NSE:NIFTYEducation
by TradersVenue
NIFTY INDEX VIEW FOR THE MONTHNOTE:- Traders,viewers and other analyst are free to express their opinion and suggestions regarding this article. View on the Index NIfty has formed an sysmmetrical triangle on a daily chart and it is confirmed!!. So a break above 10930 on closing basis shall confirm the uptrend towards 11080. If i am wrong then we shall use the upward sloping trendline as to exit the trade. Reasons for a upside breakout Note that i had given a long trade on banknifty on thursday on the basis of crucial support nearing and the "GOLDEN CROSS". 10700 nifty put option has seen great amount of put writing and call unwinding. Although 10800 call option has seen some writing but the initial opening of the index above 10830 shall spook them. That will be confirmed once market sustains above 10774-10830 for inital hour that will lead to some serious short covering. If you notice the small picture you can see a clear trend emerging for e.g the 20-dma is about to cross the 200-dma but the bigger picture is where the 50-dma is evenutally rising and will finally cross the 200-dma in fews days time(15-20 days period) giving as a "Golden Cross". Shorts might get trap,Symmetrical triangle breakout can be expected on the upside and moving averages showing us a picture. PLEASE NOTE "I MIGHT BE WRONG TRADE WITH YOUR OWN DISCRETION WITH STRICT STOPLOSSES"
NSE:NIFTYEducation
by manavtechresearch
23
The Symmetrical Triangle : Continuation PatternThe Symmetrical Triangle The symmetrical triangle (or coil) pattern normally occurs during a trend as a continuation pattern. It is essentially a coin flip as to which direction price will exit if it is truly a Symmetrical Triangle. The triangle includes at least two higher lows and two lower highs. Essentially, the trading range becomes smaller and smaller within the triangle. IDENTIFICATION GUIDELINES 1. The Shape of The Symmetrical Triangle – Two price trendlines, the upper one sloping downwards and the lower one sloping upwards so they intersect at the triangle apex. The trendlines need not be of the same length. 2. Formation of The Symmetrical Triangle – There should be two minor swing highs and two minor swing lows touching the trendlines. 3. Duration of The Symmetrical Triangle- A minimum duration of 3 weeks and it rarely exceeds 3 or 4 months long. Anything less than 3 weeks of duration likely to be a pennant formation, not a symmetrical triangle. 4. Volume inside The Symmetrical Triangle – Volumes tends to be decreasing through the formation. Often very low just before the breakout. 5. Pre-mature or False Breakout – Because volume is usually low in during the formation, it takes very little activity to bring about an erratic and false movement in price, talking the price outside of trendlines. 6. Breakout – Price closing below the lower rising trendline confirms the breakout or Price closing above the upper falling trendline confirms the breakout. HOW TO TRADE THE SYMMETRICAL TRIANGLES Trading Rules. 1. Entry – The direction of the break in the pattern can only be confirmed after the break has happened. Either Up or Down. Buy: Buy the Stock a day after Price closing above the upper falling trendline. Sell: Sell or short the stock day after Prices closing below the lower rising trendline. 2. Price Target – The technical price target is to measure the widest distance of the symmetrical triangle, Add the distance to the upper trendline breakout price for a buy target or Subtract the distance from a lower trendline breakout price for obtaining a covering price. 3. Taking Profit – For short-term traders, cover short or sell the stock when the price reaches near to the minimum price target computed in step 2. For intermediate and long-term traders, hold the stock as per your risk & capital management applied before entering into a trade. 4. Stoploss – usually, price closing above falling upper trendline is a Sell Stoploss Or price closing below rising bottom trendline is a buying stop loss. But very often, The gap between breakout price and trendlines is very wide. So it won’t be suitable for a good risk-reward ratio. Without a Good Risk to Reward ratio in trading or investing can never create wealth.
NSE:NIFTYEducation
by Equity-Earningz
Principles of Triangle Pattern (PaisaMania - Learn & Earn)Dear Traders, Teach you about the "Principles of Triangle Pattern". There are 3 types of triangle patterns available. Symmetric Triangle Ascending Triangle Descending Triangle Symmetric Triangle - It is continuous and neutral trend of the price, may break either side of the triangle. Need to confirm the trade with breakout and as well with trend indicators. Ascending Triangle - It is bullish pattern and true breakout will happen only on top line. On top flat line is act as a resistance. If the breakout happens on another side, will consider as a false breakout or pattern failure. Descending Triangle - It is opposite to the Ascending Triangle, bearish pattern and true breakout happen only on bottom of the line. On bottom line is act as a support. If the breakout happens on another, will consider as a false breakout or pattern failure.
NSE:NIFTYEducation
by raj3elite
6