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Symmetrical Triangle Pattern

The symmetrical triangle pattern symbolizes a volatility contraction in the market. It is observed when the share price is consolidating that generates two conveying treads with aligned slopes. The pattern shows an ongoing period of share price consolidation before it is forced to breakdown/breakout. The lower trend line experiences a breakdown that marks a new bearish trend. The upper trend line experiences a breakout that implies the beginning of a new bullish movement. This triangle will occur when the security price is consolidating that generates two converging trend lines with slopes. The trend lines are convening at unequal slopes so-called as a rising wedge and falling wedge triangle. It is characterized by two converging trend lines that are connecting in a series of tough and peaks. The breakdown is equal distance between initial high and low applied to breakout or breakdown point.

The triangle is a period of consolidation before the price is then forced to breakdown or breakout. The lower trend line from the lower trend line marks the start of a new bearish trend. Then breakout from the upper trend line indicates the start of a new bullish trend called a wedge chat pattern. Symmetrical triangle Pattern will differ from the ascending triangle and descending triangle in upper and lower trend lines which are sloping towards a center point. The ascending triangle has a horizontal upper trend line pretending a potential breakout high. Then descending triangles that horizontal lower a trend lines predicting a potential breakdown lower.

Why the symmetrical triangle pattern does happen

When supply and demand fall out of equilibrium, the price action of stock will move of bulls will overtake bears and push stock high the bulls. Then push stock lower traders who identify which direction of symmetric triangle brief will reward of profit.

Attributes

Pattern type : Reversal

Indication : Bullish/bearish

Breakout conformation : The confirmation is a pattern close above/below the converging trend lines on the above-average value of trading.

Measuring : We subtract high of the lowest low and highest high pattern. It will add/subtract the amount to the breakout level depending on the way the breakout moves.

Volume The volume declines throughout symmetrical triangle chart pattern formation expand on the breakout.

Conclusion

This pattern is a horizontal line through edge divide angle into an equal degree. This chart pattern occurs when share price consolidates that generate two converging trend lines with roughly equal slopes. Traders are made fake out on bullish and bearish signals that reverse after the trend starts. So it holds off for a day after the breakout. Some day closing price for the day after breakout determines the pattern is real. So look for a one-day closing price target that goes below the trend line for a bullish signal. The stock chart pattern and how to take advantage of technical analysis to the fullest to check out our entire library of predictable chart patterns. The compressive deception and images that you can recognize chart pattern scenarios and became a better trader. The break out of the direction of the symmetrical triangle is unknown. So we should distinguish a real breakout from a fake breakout. It is the best way to identify a real breakout to use a volume indicator. The real breakout appears at high trading volumes. So the breakout happens during low volume and moves will not hold and reverse. So the medium target of a symmetrical triangle us big in size as a triangle. To define the size of the target you should extend a short level as it will be of the same size as another level.