Target 1 is point G from point F Trade Setup In the above graph, Target is Point H from F which is equivalent to max distance between A&B. Target 2 is max distance between point A and B. Usually volume is dry up during the formation and breakout with very strong volume. Volume : volume is very important during the formation period.If its duration is less than 3weeks period, sometimes called it pennant. Duration: Generally, Symmetrical triangle needs more than 4 weeks or more than one moth time period.In the above chart, we defined A,C,E in the lower trend line and B,D,F for upper trend line. 2 points on the upper line and 2 points to the lower line. Triangle formation: For triangle formation, we need at least 4 points.One should be careful before trade triangle whether breakout is real or false. Reversal pattern has a lot of false breakout. Without the previous established trend, this pattern would be reversal pattern. Trend line : Since this is a continuation pattern, stock needs to have a previously established trend.The formation of pattern is depends on some factors: If formation is perfect for this triangle pattern and trade with right entry offers good risk -rewards. Symmetrical triangle pattern is a continuation pattern that offer breakout after the pattern is formed.
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