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Symmetrical Triangle Pattern on H4 Chart of Gold

Summary:
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

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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:

Symmetrical Triangle Pattern on H4 Chart of Gold

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.

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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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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