symmetric triangle detected possible break aboveConsolidation Phase: A symmetric triangle indicates a period of consolidation where the price is narrowing, with lower highs and higher lows. This suggests indecision in the market, but often precedes a breakout.
Breakdown Expectation: Typically, symmetric triangles break out in the direction of the prevailing trend or sometimes the opposite, based on market sentiment. In this case, if the breakout is expected to be downward (a breakdown), entering a put position would capitalize on the potential drop in price.
Technical Indicators: If other technical indicators (such as RSI or MACD) confirm a bearish divergence or downward pressure, it strengthens the case for a put position.
Risk-Reward Ratio: The pattern allows for a defined entry, stop, and target level, making it easier to manage risk. You can place a stop just above the triangle's upper trendline and set a target based on the height of the triangle projected downward.
