Symmetrical Triangles

The symmetrical triangle is a strong continuation chart pattern that can beTutorial Magnifying Glass found in any market or time frame.

It is formed by a succession of lower highs and at the same time higher lows. This contraction of the trading range leads to the formation of the triangle. The pattern reflects a perfect ‘tug of war’ between buyers and sellers. As the triangle develops and narrows, finally like squeezing a tube of toothpaste, eventually one side wins and there is a sudden, often quite explosive movement in price.

Look to enter the trade on the clear break of one side of the triangle and remember that as a continuation pattern, it is best to take this trade only in the direction of the dominant trend.

There is no set price target with this pattern strategy, but targeting previous swing highs or lows where appropriate is a good place to start.

Check out the video below for further explanation.

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