Symmetrical Triangle Pattern
Learn to recognize and trade a symmetrical triangle pattern through interactive charts.
What is a symmetrical triangle pattern?
A symmetrical triangle is a consolidation pattern in a trend, which could be either up or down. It is similar to a pennant, except that it unfolds over a longer period.
On average, 75% of symmetrical triangles are continuation patterns and 25% are reversals. This means that you should wait for a breakout either up or down, before opening a position.
- Nike (NKE) Symmetrical Triangle stocks
- Cleveland-Cliffs (CLF) Symmetrical Triangle stocks
- EURUSD Symmetrical Triangle forex
- FTT (FTTUSD) Symmetrical Triangle crypto
Symmetrical triangle duration
This pattern usually develops over 3 months, but can last anywhere between a few weeks and several months. Patterns that occur over 3 week or less are considered pennants.
Symmetrical triangle characteristics
A symmetrical triangle is formed as two trendlines converge.
- This pattern marks a consolidation phase in either an uptrend or a downtrend.
- The pattern must contain at least 2 higher lows and 2 lower highs.
- The price action should fill the space between both trendlines.
Trading volumes should fall as the pattern takes shape and prices start trading in a tighter range. You could think of this as the quiet before the storm.
Symmetrical triangle trading tips
Wait for a breakout to open a position. Go long if the price breaks above resistance, and short otherwise. The ideal breakout occurs 50% to 75% through the pattern. Breakouts that occur earlier may be premature. The breakout must occur on rising volume to be valid.
- Symmetrical Triangle Pattern
- Rectangle Pattern
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