Symmetrical Triangles – Long Trading Strategy with CFDs

September 1st, 2009 by Jeff Cartridge

Symmetrical triangles have been very popular with traders over the years trading the chart pattern when it breaks out in either direction. A symmetrical triangle is defined by two lines, one on the upper boundary of the price movement which slopes down and one on the lower side which slopes up. The lines have almost the same angle, hence generic amoxil the name symmetrical.

Symmetrical Triangles, Breakout Unclear

Symmetrical triangle breakouts show a slight bias to the upside with patterns breaking up 56% of the time. This upward bias is likely due to the overall bullish bias of the market as the symmetrical nature of the pattern does not clearly indicate a breakout direction. The breakout of symmetrical triangles can deliver strong returns with 44% of the patterns being profitable. The average return for the long trades is 0.85% in 9 days.

Improve Your Trades

Surprisingly a break to the upside works better in a falling or consolidating market. By using filters that require the market to be in a consolidation or a down trend you can improve the results. If the sector is consolidating or rising the results also improve. This is more as you would expect.

A breakout from a symmetrical triangle should be after the pattern has travelled at least 30% of the length. If it breaks out early in the pattern it will produce smaller profits.

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In a similar way longer patterns that have a length of 25 days or more produce smaller returns.

If volume strongly supports a symmetrical triangle breakout then the profitability of the trades improves. For volume to support the amoxicillin breakout, volume when the stock is going up should be 40% greater than volume when the stock is going down.

Symmetrical Triangles Can Be Very Profitable

By following these simple rules profitability of trading symmetrical triangles can be improved substantially. With an average return per trade of 1.87% in 11 days and a hit rate of 55% it is understandable why many traders are drawn to the symmetrical triangle.

Note: Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 – 2008.

Jeff Cartridge has been trading CFDs since 2002 and created the website LearnCFDs.com A Simple Timeless Method for Huge amoxil Gains

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