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Symmetrical Triangle Chart Pattern

Symmetrical Triangle Chart Pattern

A Symmetrical Triangle is a continuation chart pattern that forms when the price moves within two converging trendlines. One line slopes downward (resistance) and the other slopes upward (support). Over time, the trading range narrows, showing that buyers and sellers are in a temporary state of indecision.

Eventually, the price breaks out of this tightening range, often leading to a strong move in the direction of the breakout.

Key Characteristics

Trendlines

  • Upper line: drawn by connecting lower highs.
  • Lower line: drawn by connecting higher lows.
  • Both lines slope toward each other, creating a triangle shape.

Volume Behavior

  • Volume usually decreases during the formation of the triangle.
  • A spike in volume often confirms the breakout.

Breakout Direction

  • If the breakout is above resistance → bullish continuation.
  • If the breakout is below support → bearish continuation.

Timeframe

  • Can occur in intraday, daily, weekly, or even monthly charts.
  • Works well across all asset classes (stocks, forex, crypto, commodities).

How to Trade a Symmetrical Triangle

  • Identify the pattern → Make sure both trendlines slope toward each other.
  • Wait for the breakout → Never assume direction until price closes outside the triangle.
  • Confirm with volume → Higher-than-average volume adds reliability.
  • Target price → Measure the widest part of the triangle and project it from the breakout point.
  • Stop-loss → Place below support (in bullish case) or above resistance (in bearish case).

Example - Amber Enterprise Weekly timeframe chart


In this Amber Enterprises chart, a symmetrical triangle pattern formed as the price consolidated between a downward resistance line and an upward support line. This showed a phase of indecision between buyers and sellers. Eventually, the stock gave a bullish breakout above the triangle, followed by strong upward movement, confirming continuation of the uptrend












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