Guaranteed Profits from Symmetrical Triangle Chart Pattern

There are many patterns in the stock market. Some are reliable and most of the others are not that reliable. Its easier to stick to what works. Symmetrical Triangle Chart Pattern is a very reliable pattern and you are assured to get guaranteed profits from this pattern.

Have you ever wondered if there is any definitive pattern which can earn you guaranteed profits from Stock market?

Well, one of the most profitable and guaranteed pattern is a Symmetrical triangle chart pattern.

That is not to say that, this pattern never fails. But it wins most of the time and that is what matters most.

How to identify the pattern?

The price point moves and down irregularly. It shows that the market hasn't made up its mind which direction it wants to pursue.

It shows a state of confusion. And it reminds in this state for quite some time.

But soon the pattern starts to emerge.

If you start connecting the successive peaks, they start to converge towards the trough lines, as shown in the picture.

Profitable Break

This is a very good setup. You need to watch closely when the price breaks either the high lines or the trough lines.

You can enter the trade as soon as the pattern is broken.

But what if it is a false break?

You can easily identify that. If the price breaks the upper line, you will enter the LONG trade. Your stop loss is when the price falls down and penetrates the upper line below.

OK. But how do you find the profit target?

It's easy as well. The maximum height of the pattern is the required height. You can expect the price to move from the point of breakout to travel that height.

Why it works?

This pattern is one of the oldest patterns. People have studied charts long before, and understood this pattern.
So, as soon the breakout happens, everybody wants to join the bandwagon. And hence the price moves pretty quickly to the target point.

So, the earlier you enter the trade, the maximum move you will get.

Which direction will it break?

This is something nobody knows for sure in this symmetrical pattern. Hence its better to watch out which direction it breaks.

Conclusion

It is one of the profitable patterns which have worked over decades. And hence many traders have included this pattern in their arsenal.

Since it is followed by many professionals, it is important that you trade along with the trend.

It's easier that way.