|Symmetrical Triangle Tops
In a rising price trend, prices form lower highs and higher lows following two sloping trendlines that eventually intersect. The trendlines need to be the same length. There should be at least two distinct minor highs and two minor lows that touch the trendlines.
Percent of successful formations – 81% for upside breakout and for 62% for downside breakout
Failure rate – 6%
Average time to throwback completion – 2-3 hrs
Compute the formation height by subtracting the lowest low from the highest high. For upside breakouts, add the height to the highest high, for downside breakout, subtract the high from the lowest low. Alternatively, symmetrical triangles can be halfway points in a move, so project accordingly.