First, the widest distance of the symmetrical triangle can be measured and applied to the breakout point. The extension of this line will mark a potential breakout target. The reversal patterns can be especially difficult to analyze and often have false breakouts. Even so, we should not anticipate the direction of the breakout, but rather wait for it to happen. Further analysis should be applied to the breakout by looking for gaps, accelerated price movements and volume for confirmation.
Confirmation is especially important for upside breakouts.
Prices sometimes return to the breakout point of apex on a reaction move before resuming in the direction of the breakout. This return can offer a second chance to participate with a better reward to risk ratio. Potential reward price targets found by measurement and parallel trendline extension are only meant to act as rough guidelines. Technical analysis is dynamic and ongoing assessment is required. Conseco formed a rather large symmetrical triangle over a 5-month period before breaking out on the downside.