Tackle Today: Theory of a Symmetrical Triangle
August 13, 2021
≈ Pressure pushing down on me≈
Traders,
Consolidation patterns come in all shapes and sizes. Flags, retracements, pennants, triangles – you name it. The concept is simple. Stocks are like sprinters. They run, then they rest. Consolidation formations are the resting periods.
One such example that caught my eye on Thursday is the symmetrical triangle. There’s no mystery to the name. It describes precisely what the pattern looks like. It’s formed by a series of higher pivot lows and lower pivot highs. The higher lows are bullish and signify rising demand beneath the surface. On the flip side, the lower highs are bearish and suggest supply is increasing.
When you have bullish signs offset by bearish signs, it results in a stalemate of sorts. Because the trendlines pinch together, you eventually get resolution in one direction or the other.
You can look to the longer-term trend for clues as to who the eventual victor will be. If the symmetrical triangle forms in an uptrend, then bulls have the upper hand. The opposite is true for downtrends.
#TeamTackle
Chart of the Day
The Apple Triangle
Tech kingpin Apple just completed a textbook symmetrical triangle with Thursday’s rally. The 2.08% gain made the stock one of the best performers on my watchlist and should set the stage for a breakout over $150.
Video of the day
Jedi Options
Coach Tyler uses the setup on Advanced Micro Devices $AMD to analyze a potential Bull Call Spread or Bull Put Spread in this clip from Wednesday’s Halftime Report
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
At the Closing Bell 3:00 PM EST
Join Mark Justice each Friday as he covered the world of commodities and takes questions at the closing bell of the market.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
