equilateral or symetrical triangle

An equilateral or symetrical triangle shows market indecision. It is formed when it is possible to plot two equally valid trend lines moving in opposite directions. The upper trend line slopes downwards. The lower trend line slopes upwards, and when combined they form the equilateral triangle. Two powerful trending forces are equally balanced. This pattern most often occurs prior to an anticipated news event. This tells the trader there is indecision in the market. One group of people who hold the stock believe the news event will be bad for the stock. They want to sell before the news hits. They set the down trend line. Others believe the news event will be positive so they want to buy before the news breaks. They set the uptrend line. The price target is plotted from the point at which the breakout occurs above the upper or the lower edge of the triangle. In a down market the pattern often doubles its downside projection target. This pattern does not offer a strong probability of a price break in one direction or the other. This pattern is evenly balanced, with a 50% chance of breaking upwards or onwards.

MNC Triangle