The energy markets are coiling into a symmetrical triangle. Three out of four times, this is a continuation pattern.
I am considering going long the crude oil December 23 contract if it breaks out to the upside. The volatility is much less and the risk I would take is more defined.
If there are more than 4 touches on the diagonal lines, I grew suspicious of the pattern.
I hate trading symmetrical triangles (or diagonal breakouts in general). Typically, what happens is shown below. It breaks out, then precedes to go sideways.
