Courses / Chart Patterns Masterclass

Symmetrical Triangle

Converging trendlines show a market coiling for a decision.

A symmetrical triangle has lower highs and higher lows converging to a point. It shows indecision, with volatility shrinking.

It has no built-in direction, so trade the breakout in the direction of the prior trend. A false break is common, so wait for a close and momentum.

The target is the height at the start of the triangle. Breakouts about two thirds of the way to the apex tend to be cleaner.

Key takeaways

• Converging highs and lows
• No direction until the breakout
• Prefer breaks in the direction of the prior trend

Quiz

• A symmetrical triangle shows: Answer: Indecision with narrowing range. Volatility contracts.
• Direction is decided by: Answer: The breakout. Trade the breakout.
• Cleaner breakouts often occur: Answer: About two thirds toward the apex. Too close to the apex becomes noise.

Educational content, not financial advice.