Lately, I’ve been trading a set up called the Reverse Symmetrical Triangle, or RST. The pattern is a variation of the 1,2,3 Bottoms and Tops I like to trade, and offers an early entry to a trend reversal. It’s the opposite of a symmetrical triangle, where the pivots trace out a narrowing pattern that erupts in a break out or break down. The RST looks like a megaphone with the trend reversal leg connecting three pivots and the non-trend leg connecting two. In the case of CNH, the trend is down and the RST identifies the bottom and provides an excellent entry into a trend reversal.

There are several versions of both the 1,2,3 Bottom and Tops, and the RST Bottom and Top patterns and the more I explore them, the more I find symmetry in the market. The hardest thing about these patterns is to train the eye to find them. Once you start to trade them, they become easier to spot, particularly as you find them profitable.