SPX 5-Minute Chart Textbook Sideways Symmetrical Triangle Pattern

This chart shows a textbook sideways symmetrical triangle pattern and is worth a look especially for those that are novice chartists. The price action squeezes in sideways forming the triangle. Sometimes it is best to draw the trend lines as symmetrically as possible (the top and bottom trend lines converge on the end point evenly) to receive the best target projection. The lower triangle is more symmetric and note that the 'lower' upper trend line has many price touch points verifying its importance.

Regardless, the vertical side of both triangles is about 6 handles (1960-ish to 1966-ish). Thus, from the breakout at 1962.50 you add 6 which gives a 1968.50 target which was tagged on the dot and then price retreated. Voila; a textbook chart pattern. Remember all chart patterns work in all time frames so a sideways symmetrical triangle chart pattern may be used for minute, hourly, daily, weekly and/or monthly charts in the exact manner as described above. If price would have collapsed from the sideways triangle instead of breaking out, say from 1962.00, then you simply subtract the vertical triangle side (6 points) which would have forecasted a downside target at 1956. Unfortunately, for the bears, the breakout to the upside occurs out of the triangle making for happy bulls into the weekend. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.