What is a Symmetrical Triangle Pattern?
In technical analysis, it’s one of the most popular triangle price formations that falls under the category of continuation patterns. However, as the name suggests, it can be traded both ways.
The price action needs to move in a series of lower highs and higher lows in order to be able to define a triangle.
In terms of its characteristics, you need only look for two things:
An ascending bottom trendline that goes in the upwards direction.
A descending top trendline that goes in the downward direction.
Symmetrical Triangle Trading Strategy
It can be drawn simply by connecting the swing high/low with two sloping lines that will converge at some point in the future, making the break inevitable.
You need a minimum of two hits on each trendline in order to draw the pattern. As long as this criterion is met, it can be defined as a triangle pattern.
Now, keep in mind that the symmetrical triangle is a neutral chart formation and it can break in both directions.
Note* When we finally break from the Symmetrical Triangle pattern, the following move needs to be very violent and fast moving.
In technical analysis, it’s one of the most popular triangle price formations that falls under the category of continuation patterns. However, as the name suggests, it can be traded both ways.
The price action needs to move in a series of lower highs and higher lows in order to be able to define a triangle.
In terms of its characteristics, you need only look for two things:
An ascending bottom trendline that goes in the upwards direction.
A descending top trendline that goes in the downward direction.
Symmetrical Triangle Trading Strategy
It can be drawn simply by connecting the swing high/low with two sloping lines that will converge at some point in the future, making the break inevitable.
You need a minimum of two hits on each trendline in order to draw the pattern. As long as this criterion is met, it can be defined as a triangle pattern.
Now, keep in mind that the symmetrical triangle is a neutral chart formation and it can break in both directions.
Note* When we finally break from the Symmetrical Triangle pattern, the following move needs to be very violent and fast moving.