Triangles pattern aren’t easy to spot and frequently aren’t reliable using it by themselves. One of the most common triangles is a symmetrical triangle. Triangles like many other patterns, are a product in many cases, of a market without a proper trend or correcting the trend or when the price is trading in a range.
The Symmetrical triangle structure starts forming when the prices falls rapidly, creating a long red bar. The lowest price of the bar will usually be considered the base of the triangle. When prices falls suddenly, most trader see it as quick and short opportunity to enter the market and profit from a possible push comeback. Small ups and down will form the rest of the triangle forming a kind of corner where the price will be expected to break either up or down.
This small ups and down will trade in an angle forming the superior line of the triangle.
If the prices breaks up, it will be an indication to buy and sell if it breaks down.