Question of the Week: 9/22/2010

Given the similarity of price and time exhibited by each leg of a symmetrical, is that pattern more likely to drift sideways rather than trend up or down?


From personal experience, the reverse is more common. Symmetricals are so time-consuming (relatively speaking) that it is nearly impossible for a market to hesitate long enough to complete the entire pattern during one, sideways period. As a result, Symmetricals tend to have a decided upward or downward bias. Initially, their "trendy" nature can make them difficult to identify. But, after a Symmetrical passes its halfway point, the extreme price/time similarities between all "same direction" waves makes it easy to determine one is forming.

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