Symmetrical Triangle
A triangle pattern formed by lower highs and higher lows converging on each other. Neither buyers nor sellers take control, and price is squeezed into a narrowing range. It is most often read as a continuation pattern because it tends to break in the direction of the prior trend, but it can break either way. The break decides the direction.
How it forms
- Prior move. The pattern usually appears as a pause after a clear rise or fall. The prior trend gives context for which way a break is more often expected.
- Lower highs. Price makes at least two peaks, each lower than the one before. Joining them gives a downward-sloping upper line.
- Higher lows. Over the same period, price makes at least two troughs, each higher than the one before. Joining them gives an upward-sloping lower line.
- Narrowing. The two lines slope in opposite directions at roughly similar angles. At least four touches in total are needed; five or six make the pattern clearer. Volume often falls during this phase.
- Breakout zone. The break usually comes before the apex where the lines meet, roughly two thirds to three quarters of the way along the triangle. If price drifts all the way into the apex, the pattern starts to lose meaning.
- Completion. The pattern is complete when price closes outside one of the lines, and that close sets the direction. A candle whose wick crosses the line but closes back inside is not a break.
The thresholds here are approximate values commonly used in textbooks, not strict rules.
What it suggests
Lower highs show sellers stepping in lower, and higher lows show buyers stepping in higher. Neither side gives ground, and price is squeezed. This can suggest the market is balanced ahead of a decision.
The pattern does not point in a direction by itself. Breaks in the direction of the prior trend are more common, but breaks the other way are far from rare. Drawing conclusions about direction before the break is the most common misreading of this pattern.
When it strengthens, when it weakens
Strengthens
- A clear trend before the pattern
- More than two touches on each line
- Volume falling during the pattern and rising at the break
- The break coming in the last third, before the apex
- The break coming with a close that also clears a zone
Weakens
- Lines drawn with few touches, or forced to fit
- The break coming on low volume
- Price drifting all the way into the apex
- A strong zone close by in the direction of the break
- False breakouts, where a wick crosses the line but the close stays inside
The MarketLevelMap view
How it relates to zones
A symmetrical triangle has no flat side. So zones mostly matter outside the triangle, where the break is heading:
- If the triangle is squeezed between a support zone and a resistance zone, it suggests price is looking for a decision between the two. The break often heads towards one of them.
- If a zone sits close by in the direction of the break, the move may stall or react there. That zone is a more realistic reference than the measured move.
- If the apex falls inside a zone, the squeeze may turn into that zone's own reaction as price nears it. In that case the zone matters more than the lines.
After the break, price sometimes returns to retest the broken line. Because the line is sloped in a symmetrical triangle, the retest point shifts over time. If the broken line is close to the edge of a zone, the retest may also happen inside that zone.
When it completes
Close outside one of the lines.
When it is invalidated
Before completion: If price drifts all the way into the apex without breaking out, and no clear close outside the lines comes, the pattern is considered to have lost its meaning.
After completion: Even after a close in the direction of the break, if price returns into the triangle and closes outside the opposite line, the first break is considered invalid. False breaks like this sometimes lead to sharp moves the other way.
Often confused with
- PennantIt follows a sharp pole and is shorter and smaller.
- Ascending TriangleThe upper line is flat: the peaks stay at one level and only the lows rise.
- Rising WedgeBoth lines slope the same way, not in opposite directions.
For general information only. Not investment advice.Last updated: