NZDCAD WEEKLY SYMMETRICAL TRIANGLE, RETEST@78.6% 483 PIP MOVE?Trading the Symmetrical Triangle
Identify the Pattern: Recognize the symmetrical triangle on the price chart by connecting the series of lower highs and higher lows.
Wait for the Breakout: Do not enter a trade until the price breaks out of the triangle. A breakout is confirmed when the price closes outside the trend lines, either above the upper trend line or below the lower trend line.
Volume Confirmation: Look for an increase in volume during the breakout to confirm its validity.
Set Entry Points:
For an Upward Breakout: Enter a long position when the price breaks above the upper trend line.
For a Downward Breakout: Enter a short position when the price breaks below the lower trend line.
Set Stop-Loss Orders: Place stop-loss orders to manage risk. For an upward breakout, a stop-loss can be placed just below the lower trend line, and for a downward breakout, just above the upper trend line.
Set Profit Targets: Measure the height of the triangle (the vertical distance between the initial high and low) and project it from the breakout point to set profit targets.
