Below is a slider quiz to test your ability to identify symmetrical triangles and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
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Pattern A is a symmetrical triangle, sometimes called a coil. Price bounces between two converging trendlines, shown here in red. Volume tends to recede (B), like that shown. The breakout is upward when price closes above the top trendline (not above the top of the pattern) or downward when it closes below the bottom trendline. The apex (C) often marks a short-term turning point, within a day or two, D.
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Find as many symmetrical triangles as you can. For help, click here.
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The triangle is at A, B is the apex, and C is a minor low.
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Find as many symmetrical triangles as you can, but also a broadening bottom.
5 / 7
Patterns A and B are the triangles and C is the broadening bottom.
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This triangle breaks out downward at A. How far will price drop, to line B, C, D, or E -- none of the above. We're looking for the ultimate low here, the lowest low before price either rises by 20% or closes above the top of the triangle.