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Symmetrical Triangle

The Symmetrical Triangle chart pattern is formed when a stock’s highs and lows converge together to form a triangle shape. Therefore, the stock is having less and less price fluctuation. This is a stand off with the buyers and sellers. The Symmetrical Triangle pattern is considered a consolidation pattern.

symmetrical triangle

As shown in the chart image above, a Symmetrical Triangle Pattern has formed. You can see the increasing inability for neither the buyers nor the sellers to control the price. When viewed with a candlestick chart you will also notice the candlesticks becoming shorter and shorter.

What Does the Symmetrical Triangle Pattern Signal?

Commonly, the Symmetrical Triangle Pattern is a strong signal of a pending breakout, meaning that eventually either the buyers or the sellers will win the battle. When the battle is finally won by the buyer then a bullish run is likely and when won by the sellers, a bearish price drop is likely.

Applying the Symmetrical Triangle Pattern

When planning an entry into a stock with the Symmetrical Triangle Pattern, a trader would place an order inline with a buy triggered from a breakout through the top line of the triangle and a sell triggered from a breakout below the bottom line of the triangle.

symmetrical triangle bullish

 

Chart Patterns : Table of Contents

  1. What are Chart Patterns?
  2. Symmetrical Triangle
  3. Ascending Triangle
  4. Descending Triangle
  5. Double Top
  6. Double Bottom
  7. Head and Shoulders
  8. Reverse Head and Shoulders
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