Breaking the symmetrical, the traders survivor guide by hedgehog
Updated
So you been trading for a while and got stuck in a symmetrical triangle apocalypse? let me make it easy on you:
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**** Facts:
1. Triangle: At-least 2 lower highs, 2 higher lows to start the trend.. (in total 4 points)
2. Trend: Usually happens after months of one trend, and appears at the peak of the trend. appears as uncertainty, consolidation and a temporary stop for the trend,
this usually a 'no trade zone' as it's very hard to guess which direction it will break, this is where the sellers and the buyers trying to detainment if the price is valid,
until it forces them to make a decision, which usually explodes and continues for long period of time...
3. Volume: The more the Symmetrical extends, so does the volume diminishes more and more (The quiet before the storm) until decision has made which means it will
force one side to agree to the strong trend.
4. Duration: It can extend for many weeks - months, usually on strong trends it can continue for 3 whole months!!!
5. Break-out timeframe: Usually happens after half or 3/4 of the whole triangle length, if it breaks before that then it is a premature breakout which means we either
going back to that zone or it wasn't a significant stop thus wont be the break.
6. Confirmation: Should be with V big volume rise (sellers/buyers) then, and also should be confirmed only after closing daily candle.. some traders prefer to wait for up
to 3 days to confirm a new trend pattern.
7. Return to Apex: Not a must, but surely the best, if the price returns back to the Apex zones of the break, to use it as support/resist, to push it even harder to
continue the trend.
8. And the most important key note to know is price target: The widest range of the triangle (From where it started, between the highest high and the lowest low) is
the price movement up/down, if lets say the range between the top and the button is 6k$, then we should expect the break to fall/grow towards that same
ammount.
**** Some warnings:
1. It is never know and very hard to know which way a symmetrical triangle will break, but usually on more cases (+/- 75% of times) it will break towards the continues trend, if it started at the peak of bullish then more chances it will break as bullish, BUT! a symmetrical triangle is as I explained an uncertain point between the buyers and the sellers, and it might be a key point where a reversal for the market appears, which means on many cases (+/- 25% of times) it might break against the trend.
2. It's very dangerous and hard to guess where we will break to, thus sometimes it's called a 'no zone trade' which also causes less activity of volume which drops more and more the further we progress towards the end of the triangle, you should work with very tight SLs (Or even avoid trading) as a strong break out push might be so fast that not only it will easily hit your SLs, but it might also ignore them (With gaps) if the exchange SLs are 'market SLs' type, so be careful.
3. It's always best to trade after a break out fully confirmed (Or better to say: invest, as this is usually long term until we reach the price target)..
*********************************************************************************************************************************************************************************
* If you like what I do, please push "follow" and "like".
* Also if you want live time signals and learn with the community then you are welcome to join here: t.me/joinchat/AAAAAEdUerTNmmk-6ARsBw
* If you want to appreciate my work with spare BTCs then you are welcome to send them to: bc1q8kzn0x8j4dmws00ntuhyma8p4c9jwyj0gzxua9
Cheers, love <3
Your favorite vigilante speculator: Hedgehog King!
*********************************************************************************************************************************************************************************
____________________________________________________________________________________________________
**** Facts:
1. Triangle: At-least 2 lower highs, 2 higher lows to start the trend.. (in total 4 points)
2. Trend: Usually happens after months of one trend, and appears at the peak of the trend. appears as uncertainty, consolidation and a temporary stop for the trend,
this usually a 'no trade zone' as it's very hard to guess which direction it will break, this is where the sellers and the buyers trying to detainment if the price is valid,
until it forces them to make a decision, which usually explodes and continues for long period of time...
3. Volume: The more the Symmetrical extends, so does the volume diminishes more and more (The quiet before the storm) until decision has made which means it will
force one side to agree to the strong trend.
4. Duration: It can extend for many weeks - months, usually on strong trends it can continue for 3 whole months!!!
5. Break-out timeframe: Usually happens after half or 3/4 of the whole triangle length, if it breaks before that then it is a premature breakout which means we either
going back to that zone or it wasn't a significant stop thus wont be the break.
6. Confirmation: Should be with V big volume rise (sellers/buyers) then, and also should be confirmed only after closing daily candle.. some traders prefer to wait for up
to 3 days to confirm a new trend pattern.
7. Return to Apex: Not a must, but surely the best, if the price returns back to the Apex zones of the break, to use it as support/resist, to push it even harder to
continue the trend.
8. And the most important key note to know is price target: The widest range of the triangle (From where it started, between the highest high and the lowest low) is
the price movement up/down, if lets say the range between the top and the button is 6k$, then we should expect the break to fall/grow towards that same
ammount.
**** Some warnings:
1. It is never know and very hard to know which way a symmetrical triangle will break, but usually on more cases (+/- 75% of times) it will break towards the continues trend, if it started at the peak of bullish then more chances it will break as bullish, BUT! a symmetrical triangle is as I explained an uncertain point between the buyers and the sellers, and it might be a key point where a reversal for the market appears, which means on many cases (+/- 25% of times) it might break against the trend.
2. It's very dangerous and hard to guess where we will break to, thus sometimes it's called a 'no zone trade' which also causes less activity of volume which drops more and more the further we progress towards the end of the triangle, you should work with very tight SLs (Or even avoid trading) as a strong break out push might be so fast that not only it will easily hit your SLs, but it might also ignore them (With gaps) if the exchange SLs are 'market SLs' type, so be careful.
3. It's always best to trade after a break out fully confirmed (Or better to say: invest, as this is usually long term until we reach the price target)..
*********************************************************************************************************************************************************************************
* If you like what I do, please push "follow" and "like".
* Also if you want live time signals and learn with the community then you are welcome to join here: t.me/joinchat/AAAAAEdUerTNmmk-6ARsBw
* If you want to appreciate my work with spare BTCs then you are welcome to send them to: bc1q8kzn0x8j4dmws00ntuhyma8p4c9jwyj0gzxua9
Cheers, love <3
Your favorite vigilante speculator: Hedgehog King!
*********************************************************************************************************************************************************************************
Trade active
So are we going down or up guys?I think down as longs aren't safe because what I explained here:
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