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Symmetrical Triangle on Daily Chart of Gold

November 19, 2017 at 21:05 by Vladimir Vyun

A symmetrical triangle pattern has formed on a daily chart of gold. The pattern appears as prices move largely sideways with ever decreasing volatility and chart starts to exhibit higher lows and lower highs. Eventually, a breakout occurs to one side or another. As the previous trend was pointing downward, it is reasonable to expect that the next breakout will be to the downside.

On the present chart, the yellow lines form the symmetrical triangle. The cyan line offers the the entry points for those traders who want to place bearish bets. The green line provides the profit-taking target.

The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this gold pattern. You can also trade it using the free Chart Pattern Helper EA.

Update 2017-12-07: The gold price has broken down through the lower border and has hit the buffered entry level on Tuesday, December 5, at 14:06 GMT. The opening price was 1269.37; stop-loss was set to 1289.32; the current take-profit level is 1219.68. Although the breakout is very strong, the whole setup is not quite reliable due to the preceding upper border violation:

Gold - Symmetrical Triangle Pattern on Daily Chart as of 2017-12-07 - Post-Entry Screenshot

Update 2017-12-29: After showing a very favorable movement during the first days following the bearish breakout, gold rallied and has hit the trade’s stop-loss yesterday.

Gold - Symmetrical Triangle Pattern on Daily Chart as of 2017-12-29 - Post-Exit Screenshot

If you have any questions or comments regarding this symmetric triangle pattern on the chart of gold, please feel free to submit them via the form below.

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