How to trade with Symmetrical triangle chart pattern?
There are three type of triangle pattern - Symmetrical Triangle
- Ascending Triangle
- Descending Triangle
What is Symmetrical triangle?
A symmetrical triangle is a technical analysis charting pattern that is generally considered to be a continuation pattern. The pattern is created when the price action of an asset creates two converging trendlines, creating a triangle-like shape on a price chart. The triangle is created by the price converging towards a point, called the apex.
What's happen during Symmetrical triangle formation?
A symmetrical triangle is a chart formation where the slope of the price’s highs, and the slope of the price’s lows converge together, to a point where it looks like a triangle. What’s happening during this formation is that the market is making lower highs and higher lows.
This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend. If this where a battle between the buyers and sellers, then this would be a draw. This is also a type of consolidation.
How to identify Symmetrical triangle pattern?
The pattern is considered to be a continuation pattern because it typically forms during a period of consolidation, where the price is neither rising nor falling, but is instead trading in a tight range. When the price eventually breaks out of this range, it is often seen as a continuation of the trend that was in place before the pattern formed.
How to trade with Symmetrical triangle ?
The symmetrical triangle is generally considered to be a bullish pattern, as the price is typically seen as breaking out to the upside. However, it is important to note that the pattern can be either bullish or bearish, depending on the direction of the breakout.
The symmetrical triangle is one of the most commonly seen pattern best candlestick patterns, most reliable trading patterns,best stock patterns, best candlestick patterns for swing trading.
