What is a Symmetrical Triangle?

Symmetrical Triangle Definition. A Symmetrical Triangle is a familiar technical pattern where prices form two sloping lines that converge on a point. The pattern is referred to as a consolidation or continuation pattern. It is commonly seen in flat or sideways markets where neither buyers nor sellers can seem to get the upper hand. Highs get lower, and lows get higher until a breakout occurs. Occasionally this pattern follows and uptrend or downtrend. If the breakout follows the previous trend, it is called a continuation, and if the other direction occurs, it is called a reversal. The wise forex trader will place entry orders on either side of the converging lines and attempt to catch the breakout when it moves, canceling the opposite order once the move is confirmed. The chart below illustrates the Symmetrical Triangle formation. It is also similar to ascending and descending triangles.

Symmetric Triangle diagram

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.