As of 09/06/2024
Indus: 40,345 410.34 1.0%
Trans: 15,427 190.44 1.2%
Utils: 1,029 7.87 0.8%
Nasdaq: 16,691 436.83 2.6%
S&P 500: 5,408 94.99 1.7%

YTD
+7.0%
3.0%
+16.7%
+11.2%
+13.4%

42,000 or 39,500 by 09/15/2024
16,200 or 15,300 by 09/15/2024
1,100 or 1,000 by 09/15/2024
18,400 or 16,650 by 09/15/2024
5,750 or 5,375 by 09/15/2024

As of 09/06/2024
Indus: 40,345 410.34 1.0%
Trans: 15,427 190.44 1.2%
Utils: 1,029 7.87 0.8%
Nasdaq: 16,691 436.83 2.6%
S&P 500: 5,408 94.99 1.7%

YTD
+7.0%
3.0%
+16.7%
+11.2%
+13.4%
 
42,000 or 39,500 by 09/15/2024
16,200 or 15,300 by 09/15/2024
1,100 or 1,000 by 09/15/2024
18,400 or 16,650 by 09/15/2024
5,750 or 5,375 by 09/15/2024
 
For more information on this pattern, read Encyclopedia of Chart Patterns, 3rd Edition. If you click on the link and then buy the book (or anything) during the visit at Amazon.com, the referral will help support this site. Thanks.
$ $ $
Trading lessons added 6/24/24.
Symmetrical triangles, sometimes called coils, appear often on the historical price chart but performance is awful.
The above numbers are based on over 3,000 perfect trades. See the glossary for definitions.
Characteristic  Discussion 
Price trend  Can be any direction leading to the chart pattern. 
Shape  Triangular. Prices move between two converging trendlines. 
Trendlines  Two trendlines bound prices; the bottom trendline slopes up and the top one slopes down. 
Crossing  Price must cross the pattern from side to side, filling the triangle with price movement, not white space. 
Touches  Price must touch one trendline at least three times and the other trendline at least twice, forming distinct valleys and peaks. 
Volume  Trends downward 84% to 86% of the time. 
Breakout  Upward 60% of the time and 74% of the way to the triangle apex (for both breakout directions). 
Trading Tactic  Explanation 
The Measure Rule

Measure rule  Compute the height from the highest peak (point A in The Measure Rule figure to the right) to the lowest valley in the pattern (B) then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. The figure shows an upward breakout with target price C.  
Breakout volume  Patterns with heavy breakout volume (above the 30day average) do better.  
Yearly low  Triangles with downward breakouts within a third of the yearly low perform best.  
Trend start  Triangles perform best post breakout when they appear at the start of trends.  
Throwbacks and pullbacks  Throwbacks and pullbacks hurt post breakout performance. 
The figure to the right shows an example of a symmetrical triangle chart pattern.
The consolidation pattern of the symmetrical triangle forms as volume recedes. Then, price breaks out downward, but within a few days, price reverses and shoots out the top of the symmetrical triangle, busting the pattern and leading to a strong move upward.
Busted patterns (when the breakout is in one direction only to see price reverse and breakout in the opposite direction) often result in strong moves. However, symmetrical triangles have a tendency to double bust  the final breakout direction is the same as the original one.
I present the information in slider format, so be sure to click the left or right arrows to view another slide.
 Thomas Bulkowski
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