What's Symmetrical Triangle Chart Pattern in XAUUSD?

Trading Gold Identify a Symmetrical Triangle Pattern in XAUUSD

The Best Patterns Tutorial for Beginner Trader Traders - How to Identify & Trade Symmetrical Triangle Chart Pattern

Gold Patterns for Day Trading - Trading Setups Tutorial

This Symmetrical Triangle patterns charts tutorial explains how to identify chart patterns - spotting chart patterns is the first step when it comes to learning how to trade with Symmetrical Triangle chart patterns in XAUUSD.

Symmetric Triangle price patterns commonly form on XAUUSD charts and this chart pattern analysis guide explains how to trade and analyze charts using Symmetrical Triangle patterns.

Symmetrical Triangle Chart Setups

Symmetrical Triangle trading chart patterns are chart patterns with converging trendlines that form a price Symmetrical Triangle period. The technical buy point from a Symmetrical Triangle chart pattern is the upside break, while a down-ward break is a technical sell signal. Ideally, a market breaks out from a symmetrical triangle prior to reaching apex of the triangle.

Trend Lines can be plotted connecting the lows and highs of the Symmetrical Triangle phase, the trend lines formed are symmetrical & they converge to make an apex. A breakout should occur somewhere between 60-80% into the Symmetrical Triangle chart pattern - triangle chart pattern. An early or late break out is more liable to failure, and hence less reliable. After a price break out the apex forms support & resistance zones for the price. Price that has broken out of the consolidation pattern shouldn't retrace past the apex point. The apex of the Symmetrical Triangle pattern is used as a stop loss setting area for the open trades.

When these Symmetrical Triangle chart patterns form we say that the market is taking a pause prior to deciding the next market trend direction to take.

These Symmetrical Triangle chart patterns form when there is a tug of war between the buyers & the sellers and the market can't decide which way to proceed.

Symmetrical Triangle Chart Pattern - What is Symmetrical Triangle Chart Pattern in XAUUSD?

However, this Symmetrical Triangle pattern can't go on forever & just like in a tug of war one side eventually wins, looking at the chart below see how the Symmetrical Triangle eventually had a breakout and moved in one direction. Now how do we as traders ensure that we are on the side that's winning?

Breakout Downward Sell Signal after a Symmetrical Triangle Chart Setup in XAUUSD

Breakout Upward Buy Signal after a Symmetrical Triangle Chart Setup in XAUUSD

Now back to the question, how do we make sure we are on the side that's winning?

Well we wait until price moves past one of the lines of the Symmetrical Triangle chart pattern formation and put buy or sell orders in that direction. After consolidating, If the price breaks-out upper line we buy, if it breaks out lower line we open sell.

Alternatively if you do not want to wait out the Symmetrical Triangle pattern, you can use pending orders. If you would like to know more about setting pending orders navigate to the lesson: Stop Entry Order Types

The two types of XAUUSD stop order types used to trade Symmetrical Triangle patterns are:

• Buy Entry Stop XAUUSD Order An order to buy at a point above the market price - above Symmetrical Triangle trading chart pattern.

• Sell Entry Stop XAUUSD Order An order to open sell at a point below the market price - below Symmetrical Triangle trading pattern.

These are orders to buy above the market or to open sell below the market.