Symmetrical Triangle
A symmetrical triangle is a chart pattern used in technical analysis to identify potential breakouts in the price of a security. It is formed by two converging trendlines that form a triangle shape. The two trendlines are formed by connecting a series of lower highs and higher lows. As the two trendlines converge, the price of the security is squeezed into a smaller and smaller range, creating a triangle shape. The symmetrical triangle is considered a continuation pattern, meaning that it is used to identify a period of consolidation before the price of the security continues in the same direction as the prior trend.
History of the Term
The symmetrical triangle pattern was first described by Charles Dow in the late 19th century. Dow was a pioneer of technical analysis and is credited with developing the Dow Theory, which is still used today. The symmetrical triangle pattern is one of the most widely used chart patterns in technical analysis and is used to identify potential breakouts in the price of a security.
Comparison Table
| Pattern | Breakout Direction | Confirmation |
|---|---|---|
| Symmetrical Triangle | Unknown | Breakout of Triangle |
Summary
The symmetrical triangle is a chart pattern used in technical analysis to identify potential breakouts in the price of a security. It is formed by two converging trendlines that form a triangle shape. The symmetrical triangle is considered a continuation pattern, meaning that it is used to identify a period of consolidation before the price of the security continues in the same direction as the prior trend. For more information about the symmetrical triangle pattern, you can visit Investopedia, StockCharts, and TradingView.
See Also
- Ascending Triangle
- Descending Triangle
- Flag Pattern
- Pennant Pattern
- Head and Shoulders Pattern
- Double Top Pattern
- Double Bottom Pattern
- Triple Top Pattern
- Triple Bottom Pattern
- Wedge Pattern
