What is a Symmetrical Triangle Pattern?

Understanding Symmetrical Triangles in Forex

Symmetrical triangles are chart patterns characterized by two converging trendlines—a descending upper boundary and an ascending lower boundary—meeting at an apex. This consolidation pattern represents a period of market indecision where buying and selling pressure balance temporarily. While symmetrical triangles can break out in either direction, they most often act as continuation patterns, with price eventually breaking in the direction of the prior trend. The pattern typically forms over 4-12 weeks before resolution.

Pattern Characteristics

A valid symmetrical triangle requires at least two swing highs connecting the upper trendline and two swing lows connecting the lower trendline. Volume typically diminishes as the pattern develops, reflecting decreasing volatility and participant indecision. The apex point, where trendlines would intersect, acts as a decision zone—breakouts typically occur between two-thirds and three-quarters of the pattern width from the base to the apex. Later breakouts often lack conviction.

Breakout Trading Strategy

Wait for a decisive break beyond either trendline, confirmed by a strong candle close outside the pattern and ideally accompanied by volume expansion. Measure the triangle's height (base width) and project that distance from the breakout point to estimate the target. False breakouts are common, so many traders wait for a retest of the broken trendline before entering. Combine with RSI or MACD confirmation for higher probability setups.