Symmetrical Triangle
Chart PatternsA continuation pattern where converging trendlines connect lower highs and higher lows, creating a narrowing range. It typically breaks in the direction of the prior trend.
What Is a Symmetrical Triangle?
A symmetrical triangle forms when a descending trendline (connecting lower highs) and an ascending trendline (connecting higher lows) converge. Unlike the Ascending Triangle or Descending Triangle, neither side has a flat line. The price is squeezed from both directions equally.
This pattern reflects a balance between buyers and sellers, with each side gradually conceding less ground. The shrinking range and falling volatility create a coiled spring effect.
Breakout Direction
The symmetrical triangle is a neutral pattern, meaning it can break in either direction. Statistically, it tends to break in the direction of the prevailing Trend (making it a continuation pattern). On USD/JPY in a downtrend, a symmetrical triangle is slightly more likely to break downward.
Enter when price closes outside either trendline with a stop on the opposite side of the triangle. The target is the height of the triangle's widest point projected from the breakout.
Timing the Breakout
Breakouts typically occur when the price is between 50% and 75% of the way through the triangle (measured from the widest point to the apex). A breakout too close to the apex is less reliable. Volume should contract as the triangle forms and expand on the breakout. A low-volume breakout suggests a potential Fakeout and warrants caution.
Related Terms
Ascending Triangle
A bullish continuation pattern with a flat resistance line and a rising trendline connecting higher lows. Price typically breaks upward through the flat resistance.
Descending Triangle
A bearish continuation pattern with a flat support line and a falling trendline connecting lower highs. Price typically breaks downward through the flat support.
Pennant
A small symmetrical triangle that forms after a sharp move (flagpole), representing a brief pause before the trend continues. It looks like a tiny converging triangle on a pole.
Wedge
A pattern with two converging trendlines that both slope in the same direction. A rising wedge is bearish, and a falling wedge is bullish, as price typically breaks against the wedge's slope.