The Symmetric Triangle Pattern | Definition

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:

1. A symmetrical triangle pattern consists of two converging trend lines connecting a series of consecutive peaks and troughs.
2. These trend lines should have a more or less equal slope.
3. Ideally, volume rises just before or during the breakout from the symmetrical pattern.
   
   

The ChartMill Team