Symmetrical Triangle
A symmetrical triangle is a chart pattern that indicates a period of price consolidation before a breakout or breakdown. It’s characterised by two trendlines converging at a similar slope, connecting a series of peaks and troughs. The pattern is considered neutral because the two lines converge until the intersection point, indicating that the market is undecided about the future price direction.
Symmetrical triangles are the most common type of triangle that traders use and are popular amongst day traders. They can hint at which direction the price will go, depending on the breakout. An upward breakout is a bullish signal, and the downward breakout is a bearish signal.
Key Takeaway
A symmetrical triangle is a chart pattern that can indicate a period of price consolidation before both a breakout or breakdown, making it a neutral trading signal.