As of 04/24/2019 Industrials: 26,597 -59.34 -0.2% Transports: 11,099 +95.90 +0.9% Utilities: 777 +3.92 +0.5% Nasdaq: 8,102 -18.81 -0.2% S&P 500: 2,927 -6.43 -0.2% |
YTD +14.0% +21.0% +9.0% +22.1% +16.8% |
26,900 or 25,500 by 05/01/2019
11,200 or 10,500 by 05/01/2019
825 or 755 by 05/01/2019
8,250 or 7,850 by 05/15/2019
2,975 or 2,800 by 05/01/2019
|
As of 04/24/2019 Industrials: 26,597 -59.34 -0.2% Transports: 11,099 +95.90 +0.9% Utilities: 777 +3.92 +0.5% Nasdaq: 8,102 -18.81 -0.2% S&P 500: 2,927 -6.43 -0.2% |
YTD +14.0% +21.0% +9.0% +22.1% +16.8% |
26,900 or 25,500 by 05/01/2019
11,200 or 10,500 by 05/01/2019
825 or 755 by 05/01/2019
8,250 or 7,850 by 05/15/2019
2,975 or 2,800 by 05/01/2019
|
|
For more information on this pattern, read
Encyclopedia of Chart Patterns,
pictured on the right. The book has a chapter dedicated to symmetrical triangles.
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
— Tom Bulkowski
$ $ $
Statistics updated on 4/24/2019.
Symmetrical triangles, sometimes called coils, are a popular chart pattern because they appear often and perform
reasonably well in a bull market. This opinion is based not on the performance rank, which is mediocre, but on trading experience.
Symmetrical Triangle Chart Pattern
Symmetrical Triangles: Important Bull Market ResultsOverall performance rank for up/down breakouts (1 is best): not ranked Break even failure rate for up/down breakouts: 25%; 37% Average rise/decline: 34%; 12% Throwback/pullback rate: 62%; 65% Percentage meeting price target for up/down breakouts: 58%; 36% The above numbers are based on over a thousand perfect trades. See the glossary for definitions. |
|
Symmetrical Triangles: Identification Guidelines
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 86% of the time. |
Breakout | Upward 60% of the time and 73% of the way to the triangle apex (upward breakout) and 74% of the way for downward breakouts. |
Symmetrical Triangles: Trading Tips
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 30-day average) do better. | |
Yearly low | Triangles with breakouts within a third of the yearly low perform best (based on the median rise). | |
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. |
Symmetrical Triangles: Example
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.
— Thomas Bulkowski
Symmetrical Triangles: Other Examples
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Copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved.
Some pattern names are registered trademarks of their respective owners.
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