Symmetrical Triangle

  • Appears either in a downtrend or uptrend
  • Forms when prices trend sideways and make successive higher lows and lower highs until a triangular-like pattern appears
  • Can either break out or breakdown
  • Volume is decreasing, but symmetrical triangles with high volume break outs/breakdowns show larger gains/losses.
  • Effect 1: Stock prices can significantly go up when prices break out from the resistance of the upper trend line that slopes downward
  • Effect 2: Stock prices can significantly go down when prices break down from the support of the lower trend line that slopes upward
Symmetrical Triangle