Hello everyone, on the H4 chart #XLMUSD a technical analysis figure, a symmetrical triangle, has been formed. There has been a breakdown of the trend support level, and therefore there is a high probability that the price will continue to fall.
âïžBreakout means closing the body of a candle in the shape of a square or rectangle beyond the specified level. A pullback is a level at which the price is likely to begin a correction.
Forms of candles for breakdown:
Before we begin the analysis, for beginner traders I will tell you about the figure itself; for experienced traders, scroll down the forecast there.
The "Symmetrical Triangle" pattern in technical analysis:
The Symmetrical Triangle pattern is one of the important technical analysis formations that can provide valuable information about future price movements in financial markets. This formation is often found on asset charts and can be used by traders and investors to make decisions in the market.
What is a "Symmetrical Triangle"?
A âsymmetrical triangleâ is a formation on a price chart that is formed when the price range between the tops and bottoms of the price narrows. The figure is formed when the tops and bottoms of the price are connected by lines that form a symmetrical triangle. The Symmetrical Triangle pattern may indicate that the market is in a state of contraction and its movement is becoming less volatile.
Advantages of using the "Symmetrical Triangle" in technical analysis:
Trend Reversal Warning: The Symmetrical Triangle pattern can serve as a warning of a possible reversal of the current trend in the market. When price moves outside the triangle, it may indicate that the market is ready to change direction.
Confirmation of a buy or sell signal: When the price breaks the upper or lower line of the triangle, it can serve as a buy or sell signal for traders. A break of the upper line may indicate a possible increase in price, while a break of the lower line may indicate a possible decrease in price.
a breakdown of the lower line may indicate a possible price decline.
Identifying Support and Resistance Levels: The Symmetrical Triangle pattern helps traders identify support and resistance levels in the market. The upper line of the triangle can serve as a resistance level, and the lower line can serve as a support level.
In conclusion, the Symmetrical Triangle pattern is a valuable technical analysis tool that can help traders and investors make informed decisions in the market. It provides benefits in the form of trend reversal warnings, confirmation of buy or sell signals, and helps identify support and resistance levels in the market. Traders are encouraged to use the Symmetrical Triangle in combination with other analysis techniques to make more informed decisions and improve their success in the market.
Taking into account all of the above, to continue the fall, you should wait for the breakdown of the level of 0.1404 on H4, the target for the fall will be 0.1258, we envisage a rollback at the level of 0.1308.
It is also worth taking into account the daily chart; when the trend support level is reached, the market may begin to grow within the bullish trend.
You can take profits without even waiting for the goal to be achieved. And don't forget to use a positive stop loss and trailing stop.
I wish you successful trading results, I will be grateful for your support and share the article with your friends and communities if it was useful to you.