Sep-12-2024
Symmetrical triangle patterns occur when two trend lines approach one another. Essentially, it’s like if you overlaid an ascending triangle onto a descending one – and got rid of both of the horizontal lines.
The symmetrical triangle can signal a few different things, depending on market conditions.
It’s often considered a continuation pattern because the market usually continues with the prevailing trend. However, if there is no clear trend before the pattern forms, it’s a bilateral pattern and the price could go in either direction. Once a breakout in either direction is confirmed, it suggests that the trend is likely to continue in that direction.
To trade a symmetrical triangle, be ready for the market to break out in either direction. Then watch to see whether that turns into a new trend, and buy or sell accordingly.
