Chris Rowe

How to Profit From an Explosive Chart Formation

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I want to share an explosive chart pattern that is easy to identify and profit from, because this information has made me, and many investors I know, millions.

It is called the symmetrical triangle.

The symmetrical triangle is usually a "continuation pattern." So, whatever direction the prior trend was, is most likely the direction in which the stock will break out (if the prior trend was up) or break down (if the prior trend was down).

There are two other popular triangle patterns that are powerful in their own right called the ascending triangle (typically found in uptrends) and the descending triangle (typically found in downtrends). Learn more about these chart patterns.

But the symmetrical triangle is neutral, and is found in downtrends as often as it's found in uptrends.

There are two trendlines (black lines) that form the symmetrical triangle: One sloping up, and one sloping down. (The green line represents the stock.)

To form the symmetrical triangle, we draw two converging trendlines, and each is touched twice. The upper trendline can only be drawn after the stock has made a second peak lower than the first (blue dots).

The lower trendline can only be drawn after the stock has made a second low higher than the first (red dots).

So, altogether, there are at least four reversal points.