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Symmetrical Triangle Pattern on H4 Chart of Gold

October 21, 2018 at 18:38 by Vladimir Vyun

Yet another pattern has formed on the 4-hour chart of gold. Unlike the previous week’s bullish pennant, this week’s symmetrical triangle pattern is not inherently bullish. Yet analysts usually consider it to be a continuation pattern, meaning that prices will likely move in the previous direction after a period of consolidation. Considering that the previous move was up, a breakout to the upside seems more likely than to the downside. Furthermore, the technical indicators also support the bullish case for gold.

The converging yellow lines show the symmetrical triangle itself, which has formed after prices had started moving sideways. The cyan line suggests an entry point for long positions. It is situated 10% of the triangle’s widest part above the top border of the pattern. Above it by the triangle width is the green line, which offers a profit target. A stop-loss for symmetrical triangle is often situated just below the breakout point.

You can click on the image to see a full-size version:

Gold - Symmetrical Triangle Pattern on 4-Hour Chart as of 2018-10-21

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 2018-10-23: The events have been unfolding quite fast for gold. Today at 7:03 GMT, the cyan line has been crossed at 1231.21 with stop-loss at 1223.29 and take-profit at 1247.29 (subject to change). The price had since rallied to 1239.73 (half-way to the target) and then pulled-back to just above the triangle’s upper border and bounced up from it.

Gold - Symmetrical Triangle Pattern on 4-Hour Chart as of 2018-10-23 - Post-Entry Screenshot

Update 2018-10-30: The trade has hit its stop-loss at 8:15 GMT today.

Gold - Symmetrical Triangle Pattern on 4-Hour Chart as of 2018-10-30 - Post-Exit Screenshot

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

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