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.

Download our free chart patterns PDF for a guide to 20 classical chart patterns with over 100 interactive charts, also on TradingView.

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.

Characteristics

A symmetrical triangle is formed as two trendlines converge.

  1. This pattern marks a consolidation phase in either an uptrend or a downtrend.
  2. The pattern must contain at least 2 higher lows and 2 lower highs.
  3. The price action should fill the space between both trendlines.

Trading volumes

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.

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About the author

I'm St├ęphane, a trader and an entrepreneur. My mission with TrustedBrokers is to help you find the right broker for you, whether you're a beginner or a pro. I've personally used and tested the brokers on our service, opening and funding real-money accounts, contacting customer service and placing trades. I started my career in investment banking in London.

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