The following example shows both symmetric triangle breakout ( continuous ) and Symmetric Triangle breakdown ( reversal ) pattern formation in current Baidu ( BIDU ) stock .
Baidu ( BIDU ) stock trading in a Symmetric Triangle pattern for the year 2016 between $ 139 to $ 216 . BIDU formed symmetric triangle pattern as it made lower highs and higher lows in a coil format . It formed 3 upper pivots and 2 lower pivots to complete the pattern . Currently , BIDU is trading at $ 174 near the 3 / 4th of pattern width level . BIDU is also trading above 200 SMA and may breakout from the pattern upper or lower trendlines . The case for both upside or downside breakout trades is presented here .
Trading BIDU breakout
1 . BIDU was trading ( January 2017 ) in a Symmetric Triangle with a weekly close at $ 174 .
2 . The pattern formed 3 higher-low pivots on the upper trendline .
3 . If price breaks above the upper trend line with increased volume , it may signal a breakout .
4 . Enter long on upper trendline breakout above $ 189.5 . 5 . Place a Stop at the Apex $ 176 . 6 . The height of the Symmetric Triangle pattern is $ 80 .
7 . Targets are placed at 62 % ($ 237 ) and 100 % ($ 266 ) of its height above the breakout levels .