Symmetrical triangles, sometimes called coils, are a popular chart pattern because they appear often and perform reasonably well in a bull market.
This opinion is based not on the performance rank, which is mediocre, but on trading experience.
Price trend Can be any direction leading to the chart pattern.
Triangular shape. Prices move between two converging trendlines.
Two trendlines bound prices; the bottom trendline slopes up and the top one slopes down.
Price must cross the pattern from side to side, filling the triangle with price movement, not too much white space.
Touches Price must touch each trendline at least twice, forming distinct valleys and peaks.
Volume Trends downward 86% of the time.
Breakout Upward 54% of the time and 75% of the way to the triangle apex (upward breakout)
The consolidation pattern of the symmetrical triangle forms as volume recedes. Most times price breaks out downward, but within a few days,
price reverses and shoots out the top of the symmetrical triangle, busting the pattern and leading to a strong move upward.This will result to what is is called bursted triangle pattern.
Technicals suggest that price is currently ranging between the 0.5 and 0.382fib retracement levels, a breakout from this level and if price closes above the upper diagonal resistance a buy signal will be given and the measured move to the two fib extension levels will be met.
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.