Technical Analysis
Symmetrical Triangle
A neutral consolidation pattern with converging trendlines — direction of breakout determines bullish or bearish continuation.
Key rules
- Converging trendlines — at least 2 touches on each side
- Neither boundary is flat; both are at an angle
- Breakout direction is confirmed by expanding volume
- Most reliable when price breaks out within the first 2/3 of the pattern
- Measured target = height of the widest point, projected from breakout
A symmetrical triangle forms when price creates converging higher lows and lower highs, compressing into a tighter and tighter range. Unlike the ascending or descending triangle, this pattern is directionally neutral — the breakout can occur to either side.
**Structure** - Upper trendline: declining, connecting lower highs - Lower trendline: ascending, connecting higher lows - Convergence point is called the apex
**Breakout** A close beyond either trendline on expanding volume signals the directional resolution. Breakouts occurring in the direction of the prior trend (continuation) are more reliable than reversal breakouts.
**Timing** Breakouts typically occur within the first 2/3 of the triangle. If price reaches the apex without breaking out, the pattern loses its predictive value.