Symmetrical Triangle
Converging trendlines with lower highs and higher lows, signalling a coil of indecision that typically breaks in the direction of the prior trend.
A Symmetrical Triangle forms when price makes lower highs and higher lows, converging toward an apex. Neither bulls nor bears dominate during the coil — volume contracts.
The breakout direction is usually (not always) a continuation of the prevailing trend before the triangle. Target = the height of the widest part of the triangle, projected from the breakout point.
- The closer price is to the apex at breakout, the weaker the move — look for breaks in the first two-thirds of the triangle.
- False breakouts are common; wait for a candle close outside the boundary.