Symmetrical triangle as a continuation pattern. Following the BTCUSD chart.
All right folk!
Symmetrical triangle can be considered as a continuation pattern.*
To take a measurement from a symmetrical triangle we can:
- Project AB (the height of the base) from the breakout point C.
- Drow a parallel from the top of the baseline (AB).
And here is what we've got:
Now adding the trend lines to get the triangle:
We are in the downtrend. We deal with the continuation pattern, so the parallel is drawn below the chart:
So here we see the target: $6k.
Got popcorn?
Good luck!
*The image is taken from the book "Technical Analysis of the Financial Markets" by John J. Murphy