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Pattern Types
Often, one of the following patterns as influencing the price action of a stock or market covered in AvidTrader research. Click on any pattern of interest for more information about its characteristics, its stages and real examples:
Channel
Double Bottom, Double Top
Head & Shoulders
Island
Rounding Bottom, Rounding Top
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Complex Triangle
Trendline Touch
Wedge
Pattern Stages
Breaking
Consolidating
Correcting
False Break
Trending
Fallen Star
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Symmetrical Triangle Patterns
The SYMMETRICAL TRIANGLE usually appears as a consolidation during a longer-term trend. Buying and selling pressure are at equilibrium as buyers and sellers are becoming equally impatient. Each of the pattern's legs is shorter than the last as prices trend towards the TRIANGLE's apex.
Besides the obvious shape requirements, it is also important that the trend resumes before prices reach the TRIANGLE's apex. Trading through the apex without resolution will invalidate the TRIANGLE. It is also necessary for volume to decline as the pattern forms, and to increase rapidly as prices break the triangle's downtrending support or uptrending resistance.
The TRIANGLE will occasionally attempt to reverse the trend that led into the pattern. In such cases, the attempt does not tend to travel a greater distance than the TRIANGLE's largest leg before resuming the original trend.
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