Learn This Pattern to Predict the Next Market Move

🟩 What Is a Symmetrical Triangle?

A symmetrical triangle pattern is a continuation pattern that typically forms when the market enters a phase of consolidation and price compression.
In this pattern, price moves between two converging trendlines—one descending and one ascending.

Upper trendline: Lower Highs

Lower trendline: Higher Lows

These two lines converge toward each other, forming a balanced, center-aligned triangle.

🟨 Key Characteristics of a Symmetrical Triangle

✔️ Two converging trendlines (one sloping down, one sloping up)
✔️ Gradual decrease in trading volume
✔️ Price moves toward the apex of the triangle
✔️ Breakouts usually follow the prior trend
✔️ It is primarily a continuation pattern, though occasional reversals can happen

🟦 How to Identify a Symmetrical Triangle

To confirm a valid symmetrical triangle, check the following:

🔹 1. At least two touches on resistance and two on support

You must see lower highs and higher lows.

🔹 2. Both trendlines must slope inward

Unlike ascending or descending triangles, both lines are angled.

🔹 3. Price must contract toward the apex

Smaller swings = market compression.

🔹 4. Volume should gradually decline

Until the breakout occurs.

🟧 Professional Entry Strategies
📌 Method 1: Entering After the Breakout (Conservative Entry)

Wait for a candle to close outside the triangle

Volume should increase as confirmation

Stop-loss below the last swing or below the trendline

📌 Method 2: Entering After a Pullback (Low-Risk Entry)

Wait for a retest of the broken trendline

Use candlestick triggers (Pin Bar, Engulfing, Break & Retest)

Much smaller stop-loss + a better risk-to-reward ratio

📌 Method 3: Volume + Breakout + Positioning

For advanced traders, Volume Spread Analysis (VSA) is the strongest confirmation tool for breakouts.

🔶 Setting Take-Profit Targets
Standard Method:

📐 Target = Height of the triangle base
(measured from the widest part of the pattern)

Professional methods:

✔️ Target 1: Market Structure
Based on supply/demand zones

✔️ Target 2: Fibonacci Extensions
1.618 is often the most reliable target

✔️ Target 3: Multi-Timeframe Alignment
Check breakout levels in higher timeframes for added confidence

🔶 Fake Breakouts in Symmetrical Triangles

Fake breakouts are extremely common in this pattern.

Signs of a fake breakout:

❌ Low volume
❌ Long-wick candles
❌ Quick rejection back into the triangle
❌ Breakout occurs too close to the apex
❌ Lack of momentum

Fake breakouts often lead to a strong move in the opposite direction.

🔶 Pattern Behavior in Different Market Conditions
🟢 In an uptrend:

80% of the time it breaks upward → continuation

🔴 In a downtrend:

About 65% of the time it breaks downward → continuation

⚪️ In a ranging market:

Direction of breakout is uncertain → extra caution required

🔶 Common Mistakes Traders Make

🚫 Entering before the breakout
🚫 Confusing the pattern with ascending/descending triangles
🚫 Trusting breakouts without volume confirmation
🚫 Setting stops too close
🚫 Ignoring market psychology and momentum

🔷 Final Professional Summary

A symmetrical triangle indicates:

The market is in a compression phase

Lower Highs + Higher Lows

Price is preparing for a strong explosive move

Breakouts usually follow the prior trend

Valid breakouts require volume + candle close outside

Targets follow the triangle height or Fibonacci extensions

Fake breakouts are common → caution is essential