A symmetrical triangle has been created on a weekly graph of the EUR/NZD currency pair. It’s not an ideal example of such pattern since the upper slope is a bit steeper than the minor one. However, it can serve as a fine breakout entry setup because of the fact that it acts as a unification funnel following a moderately firm uptrend wave.
It’s a long-term pattern — the base of the symmetrical triangle is in September 2015, so don’t forecast it to to trigger overnight.
The margins of the triangle are noted with the yellow lines on the graph image below. The cyan line is my breakout entry speck situated at 10% of the triangle’s base’s height from the upper margin.
The green borderline will be my take-output level, allocated at 100% of the identical height from the upper borderline. I establish my stop-loss to the low of the breakout line or to the low of the above bar should the breakout one, be too external of the pattern.
I will disregard a bearish breakout from this symmetrical triangle as it is a continuity pattern that follows an increasing trend.
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