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Symmetrical Triangle

The SYMMETRICAL TRIANGLE usually appears as a consolidation during a longer-term trend. Buying and selling pressure are at equilibrium as buyers and sellers are becoming equally impatient. Each of the pattern’s legs is shorter than the last as prices trend towards the TRIANGLE’s apex.

 

 

 

Besides the obvious shape requirements, it is also important that the trend resumes before prices reach the TRIANGLE’s apex. Trading through the apex without resolution will invalidate the TRIANGLE. It is also necessary for volume to decline as the pattern forms, and to increase rapidly as prices break the triangle’s downtrending support or uptrending resistance.

The TRIANGLE will occasionally attempt to reverse the trend that led into the pattern. In such cases, the attempt does not tend to travel a greater distance than the TRIANGLE’s largest leg before resuming the original trend.