EUR/GBP Symmetrical Triangle Formation
by Trader Rich
This was originally posted on 10/20/2005. I’m putting it at the top again because a currency analyst at dailyfx mentions it today: EUR/GBP Large Triangle Setup
I’ve spotted what definately looks like a symmetrical triangle. I’m expecting a big breakout that could possible net 300+ pips.
I know it’s small but check out the daily EUR/GBP charts. According to the rules of a symmetrical triangle formation, a breakout could occur at anytime. The following are general characteristics of a symmetrical triangle:
- Can happen in an uptrend or downtrend
– Each point on upper line is lower than the one before it. Each point on the lower line is higher than the one before it
– The length of the pattern can last from a few weeks to months
– As pattern develops, volume contracts
The chart above has all of these characteristics except for contracting volume. I don’t have anywhere to obtain volume so I don’t know if it does or not.
There is no way to tell which way the breakout is going to be.