Symmetrical Triangle on Daily Chart of Gold

A symmetrical triangle pattern has formed on a daily chart of gold. The pattern appears as prices move largely sideways with ever decreasing volatility and chart starts to exhibit higher lows and lower highs. Eventually, a breakout occurs to one side or another. As the previous trend was pointing downward, it is reasonable to expect that the next breakout will be to the downside.

On the present chart, the yellow lines form the symmetrical triangle. The cyan line offers the the entry points for those traders who want to place bearish bets. The green line provides the profit-taking target.

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 symmetric triangle pattern on the chart of gold, please feel free to submit them via the form below.