Symmetrical Triangle

A Symmetrical Triangle forms when price creates a series of lower highs and higher lows. Draw a descending line over the peaks and an ascending line under the troughs, and you’ll see those lines converge. Price gets squeezed, volume often tapers, and the breakout can go either way — though many times it follows the prior trend.

How to Identify

1. Converging Trendlines. One slopes down from the highs, the other slopes up from the lows.

2. Narrowing Range. Price moves in smaller swings as it heads toward the triangle’s tip.

3. Volume Clues. Volume might shrink during consolidation, then spike once price breaks out.

How to Use

• Entry. Wait for a strong close past either trendline. Some traders enter right on the break; others wait for a retest of the broken line.

• Stop Placement. A common tactic is to place stops inside the pattern or just beyond the most recent swing high/low.

• Target. Measure the triangle’s widest point (from top to bottom) and project that distance from the breakout level. This gives a rough price target.

• Trend Context. If the market was trending up before, the odds might favor an upside breakout, and vice versa.

Pro Tips

• Avoid jumping in too early. False breaks can happen.

• Look at volume to see if there’s real energy behind the move.

• Keep an eye on bigger support or resistance zones just beyond the triangle.

Exercise

Scan old charts for at least three Symmetrical Triangles. Mark the converging lines and note where price finally breaks out. Imagine taking a trade at the breakout. Place a stop inside the triangle and aim for a target equal to the pattern’s widest point. Advance the chart to see how the trade would have played out. Keep a brief record of your findings and compare how price behaved in each case.