A symmetrical triangle pattern has formed on a 4-hour chart of palladium. Such pattern forms as volatility on markets decreases and prices move in a continuously narrowing range. It is a continuation pattern, meaning that prices usually resumes movement in the previous direction after a period of sideways movement. In the present case, that direction is up.
On the present chart, the yellow lines show the symmetrical pattern itself. The cyan line, situated at 10% of the pattern’s width above the upper side of the triangle, offers an entry position in case if prices go up. The green line is situated at the pattern’s width above the triangle and suggests a profit-taking objective.
You can click on the image to see a full-size version:
The chart was built using the ChannelPattern script. YouRead More »