Friday, December 5, 2014

USDINR ~ Positional Analysis 05.12.14

Symmetrical Triangle Bottom

The symmetrical triangle bottom is a bearish continuation pattern. The pattern is formed by two trend lines which are symmetrical to the horizontal and convergent. The first one is a bearish slant that will give support and the other is a bullish slant that will make resistance. To confirm a symmetrical triangle bottom, there must have oscillation between the two lines. Each line must be touched at least twice for validation.

To called a symmetrical triangle "bottom", it is necessary that the movement that preceded the formation of the triangle being bearish.

 Here is a graphical representation of a symmetrical triangle bottom:

The target price of this pattern is determined by its height from the base of the triangle that we carry over the breakpoints Another technique is to draw a parallel line to the resistance of the symmetrical triangle from the first contact point with the support to obtain a bearish target price.