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What to Do When Gold Breaks to Upside from Symmetric Triangle

February 28, 2016 at 20:16 by Vladimir Vyun

A symmetric triangle has formed on the daily chart of gold. This pattern appears when prices move sideways for some time with ever decreasing volatility. After a while, prices break either to upside or downside. Considering that gold has a bullish setup, it is not unreasonable to assume that a breakout would likely occur to the upside. The present chart offers suggestions for traders’ actions in such an occurrence.

The yellow lines on the chart represent the triangle itself. The cyan line offers an entry level in case of a bullish breakout. The green line indicates a profit-taking area for traders to capitalize on an upside move if it indeed occurs.

Click the image to enlarge it to a full-size screenshot:



You can download the MetaTrader 4 chart template for this pattern.

If you have any questions or comments regarding this chart pattern for gold, please feel free to reply below.

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