Trader's Logbook

Will EW go further down or it hit the bottom at this point?. Looking at the chart today, it seems EW is creating a Symmetrical Triangle and today’s price hit the slope. If the support slope will not be a strong one, we still have a good support at 23.6% Fibonacci Retracement level. This level has been tested before to be strong as you can see during the 3rd week of January when price rest and bounce from that level after a hard drop.

A Symmetrical Triangle is a chart formation where the slope of the price’s highs and the slope of the price’s lows converge together to a point where it looks like a triangle. What’s happening during this formation is that the market is making lower highs and higher lows. This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend. (babypips). The symmetrical triangle usually forms during a trend as a continuation pattern.

Caveat!