The bullish symmetrical triangle gives you higher potential

Have ever wondered what a symmetrical triangle related to the stock market? Find out about this pattern to pick a potential stock.

Take a look at the chart pattern of a stock over a period of a year or six months. Generally you will see three basic patterns: upward movement for a short time, downward movement for other time and range trading over another short period of time. These basic ingredients make up for different combinations of chart patterns. One interesting of these is the symmetrical triangle pattern.

When upward and downward movements are consecutively happening but with reducing peaks and valleys, one can draw a triangle by connecting those peaks and valleys. If the triangle is symmetric then it is called a symmetrical triangle pattern. It is more often a bullish pattern indicating that the share will break out and rise to new highs. The chances of a break even can also be there but that nevertheless seldom happens. Use this pattern to look for potential stocks to reap profits more than 10% over a period of a month to six months.