Symmetrical Triangles represent a period of consolidation that may forecast either continuation of the existing trend or a trend reversal. In other words, it may represent a breakout or breakdown. A breakdown from the lower trendline marks the start of a new bearish trend, whereas a breakout from the upper trendline indicates the start of a new bullish trend.
Symmetrical Triangle Chart Pattern Example
The following things are important when identifying an symmetrical triangle:
- A symmetrical triangle pattern consists of two converging trend lines connecting a series of consecutive peaks and troughs.
- These trend lines should have a more or less equal slope.
- Ideally, volume rises just before or during the breakout from the symmetrical pattern.
The ChartMill Team