SYMMETRICAL TRIANGLE IN A NEW UPTREND (BULLISH)

Symmetrical triangle in an uptrend (bullish). Measure the base, add it to the breakout point and calculate your target. It doesn't get much easier than this.

SYMMETRICAL TRIANGLE IN AN UPTREND (BULLISH)

This was probably the biggest "gimme" I've seen all year (2001). Perfect Symmetrical Triangle in an uptrend. While I doubt anybody could have accurately predicted the date of the Government's announcement to stop issuing 30 Year Bonds, being in and getting "lucky" was a pretty good bet. Notice the enormous jump in volume too! This just goes to show that you don't have to know the news to take advantage of the markets. Just read the charts. Like the commercial says, ..."it's in there". 

SYMMETRICAL TRIANGLE IN THE BEGINNING OF AN UPTREND (BULLISH)

The symmetrical triangle in the beginning of this uptrend signaled even better things to come.  Notice the leveling of the volume during the formation of the triangle and the burst of activity on the breakout.

SYMMETRICAL TRIANGLES IN AN UPTREND (BULLISH)

Plenty of opportunities to get in on this one.  The symmetrical triangles were all resolved to the upside.  In this example you'll notice that volume is viewed with an on balance volume or OBV indicator (a running cumulative total of positive and negative volume numbers) instead of the typical vertical bars that run along the bottom of the chart.  In some markets with chronically light volume readings, it is sometimes easier to view the volume changes with an OBV line.  As you can see, there is a general leveling off of volume in the patterns with an increase in volume on the breakouts.  

SYMMETRICAL TRIANGLE IN AN UPTREND (BULLISH)

The symmetrical triangle in this uptrend continued the move higher.  Notice how the volume dried up during the formation of the pattern with an explosion of new activity on the breakout!

SYMMETRICAL TRIANGLE IN AN UPTREND (BULLISH)

High Grade Copper / Nearest Future Chart (March '00) Weekly

Here's a weekly chart with a great example of a symmetrical triangle as a continuation pattern in an uptrend.  Notice the how the volume falls during the beginning of its consolidation, starts to pick up on its move higher and jumps on its breakout!  (Also, look at the weak volume reading on the down week (the weakest of the pattern) just prior to its eventual breakout to the upside. Very telling.)

SYMMETRICAL TRIANGLE IN A DOWNTREND (BEARISH)

Symmetrical triangle in a downtrend.  This pattern continued the move lower in earnest!  Notice the volume diminish during the period of indecision and then jump on its resolve!

SYMMETRICAL TRIANGLE IN A DOWNTREND (BEARISH)

Symmetrical triangle in a downtrend, bearish. This triangle perfectly measured out the ensuing move lower.

SYMMETRICAL TRIANGLE IN THE BEGINNING OF A DOWNTREND (BEARISH)

Symmetrical triangle in the beginning of a downtrend.  Notice the moving average (simple 40-day) has a downward bias. Volume is light in the triangle but very heavy on the breakout.

SYMMETRICAL TRIANGLES IN A DOWNTREND (BEARISH)

Symmetrical triangles in a downtrend.  Each pause seems to resolve itself with renewed bearish conviction. Volume lightens up during the triangle formations and picks up again on the breakouts.

The information contained here was gathered from sources deemed reliable, however, no claim is made as to its accuracy or content. This does not contain specific recommendations to buy or sell at particular prices or times, nor should any of the examples presented be deemed as such. There is a risk of loss in trading futures and futures options and you should carefully consider your financial position before making any trades.  The reference to statistical probabilities does not pertain to profitability, but rather to the direction of the market. The size and the duration of the markets move, as well as entry and exit prices ultimately determines success or failure in a trade and is in no way represented in these statistics. Furthermore,  no representation is being made that any of the examples shown resulted in actual trades. This is not, nor is it intended to be, a complete study of chart patterns or technical analysis and should not be deemed as such.

Futures and options trading carries significant risk and you can lose some, all or even more than your investment.