Bilateral/Consolidation XAGUSD Chart Patterns Silver Trading

With bilateral/consolidation xagusd trading patterns the xagusd trading market can move in any direction. There are two different types of consolidation xagusd chart patterns that form on silver charts:

• Symmetric Triangles - Consolidation xagusd trading chart patterns
• Rectangles - Range/ranging market

Consolidation Silver Trading Chart Patterns

Symmetrical triangles are xagusd chart patterns with converging silver trend lines that form a consolidation period. The technical buy point from a symmetrical triangle is the upside break, while a downside break is a technical sell silver signal. Ideally, a market breaks out from a symmetrical triangle prior to reaching the apex of the triangle.

Silver Trend-lines can be drawn connecting the lows and highs of the consolidation phase, the silver trend lines formed are symmetric and converge to form an apex. A breakout should occur somewhere between 60-80% into the triangle xagusd chart pattern. An early or late break out is more prone to failure, and therefore less reliable. After a xagusd price breakout the apex forms support and resistance levels for the xagusd price. Silver Price that has broken out of the apex should not retrace past the apex. The apex is used as a stop loss setting area for the open Silver trades.

When these consolidation patterns form we say that the xagusd market is taking a break before deciding the next direction to take.

These consolidation patterns form when there is a tug of war between the buyers and the sellers and the xagusd trading market can not decide which way to move.

Consolidation Silver Trading Chart Pattern

However, this pattern cannot go on forever and just like in a tug of war one side eventually wins, looking at the silver chart below see how the consolidation eventually had a breakout and moved in one direction. Now how do we make sure that we are on the winning side?

Break Out Downwards Sell Silver Signal after a Consolidation

Breakout Upward Buy Silver Signal after a Consolidation

Now back to our question, how do we make sure we are on winning side?

Well we wait until xagusd price moves past one of the lines and put buy or sell orders in that direction. After consolidating, If xagusd price breaks the upper line we buy, if it breaks out the lower line we sell.

Alternatively if you do not want to wait out the consolidation, you can use pending silver orders. If you would like to know more about pending silver orders go to the topic: Stop Entry Silver Trading Order Types

The two types of stop order types used to trade consolidation xagusd trading chart patterns are:

• Buy Entry Stop An order to buy at a level above the xagusd trading market xagusd price.

• Sell Entry Stop An order to sell at a level below the xagusd trading market xagusd price.

These are silver orders to buy above the xagusd trading market or to sell below the xagusd trading market.

Rectangle Silver Trading Chart Pattern

A rectangle consolidation pattern is a trading range with narrow xagusd price action which forms a consolidation phase in xagusd market. The trading range is defined by 2 parallel silver trend-lines which are horizontal & indicate and show the presence of support and resistance. This silver trading pattern is drawn on a silver chart using a rectangle, hence the name rectangle xagusd trading pattern.

For this consolidation xagusd chart pattern, xagusd price forms multiple highs and lows that can be connected with horizontal silver trendlines that are parallel to each other. This silver trading pattern forms over an extended period of time giving the pattern its rectangle shape.

A breakout of xagusd price action from this consolidation pattern forms when either of the horizontal line is penetrated and the trading range of this rectangle is broken. An upside breakout is a buy silver signal. A downside breakout is a sell xagusd trading signal.

Rectangle Pattern XAGUSD - Consolidation Pattern

Silver Price Breaks the consolidation range after sometime & continues to move upwards after an upward market break out.