Symmetrical Triangle Pattern

What the Symmetrical Triangle pattern means

Buyers and sellers compress into a tighter range as neither side wins, which builds energy for a sharp move. The pattern itself does not predict direction. The breakout decides it, and it often continues the trend that preceded the triangle.

How the Symmetrical Triangle is traded

• →Wait for a decisive close outside one of the converging trend lines before taking a side.
• →The target is roughly the widest height of the triangle projected from the breakout.
• →Stop goes just inside the triangle on the opposite side of the break.
• →Trade in the direction of the prior trend when in doubt, since continuation is common.

Common mistakes

• ✕Guessing the breakout direction and entering inside the coil.
• ✕Trading the first false poke outside the lines before a real close confirms it.