I have seen many fall into the same trap with the symmetrical triangle. Everyone thinks it's a clear signal, but in reality, it's just compression. Nothing more.



Look, when the highs fall and the lows rise, volatility is drying up. The volume disappears. It's balance, period. But that doesn't tell you which way the price will go. That's the problem most people ignore.

In trading, what really matters is a clean structure. You need converging trend lines that aren't a mess, multiple reactions on both sides of the range, and volume genuinely contracting within that compression. When you see that, then you start paying attention. Usually, the breakout happens before the triangle reaches its apex, but guessing the direction is exactly how people get trapped.

Real confirmation requires two things—and only two: first, the breakout of the trend line; second, genuine acceptance through a legitimate support or resistance level with volume behind it. A diagonal breakout alone is noise. Nothing.

And look, the direction often follows the previous trend, but relying on that is like playing a guessing game. What I've learned from years of trading is simple: don't get ahead of yourself. Let the price show its intention first. Wait for confirmation, then act. The market will always give you another opportunity if you miss this one.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin