Tag: Symmetrical Triangle

Symmetrical Triangle is a powerful chart pattern used in technical analysis to identify a period of consolidation in a trend. This pattern consists of two converging trendlines connecting a series of highs and lows, forming a triangular shape. Symmetrical Triangle patterns indicate a reduction in the volatility of price action; as the price swings become progressively smaller, it is expected that a breakout will occur in the near future. Traders watch for a close above or below one of the trendlines to indicate the next direction of the trend. By recognizing and trading Symmetrical Triangle patterns, it is possible to capitalize on an impending price move.