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A symmetrical triangle is a chart pattern characterized by progressively lower highs and progressively higher lows, with two trendlines converging at equal angles. This pattern typically serves as a trend continuation signal. The formation of a symmetrical triangle indicates that market volatility has been compressed over a period of time, signaling an imminent price breakout.
Technical Characteristics of the "Symmetrical Triangle" Pattern
- A clear trend must exist before the triangle forms, to establish the subsequent direction of continuation
- Minimum 4 contact points: dynamic support line (ascending) 2 times, dynamic resistance line (descending) 2 times. The more contact points, the higher the pattern's reliability
- As price converges, trading volume should gradually diminish
- Although symmetrical triangles typically break out in the direction of the trend, occasional false breakouts in the opposite direction can occur. For safer trading, it is recommended to wait for a retest of the breakout zone (upper or lower boundary) for confirmation