Symmetric Triangle Pattern
The third branch of triangle family is symmetric pattern. As its name, two of the three sides are symmetric and sloped. In contrast to descending and ascending triangles, there are no support, resistance, or horizontal lines and the upper and lower trendline are both sloping toward each other. The convergent shape of the symmetric triangle gives the idea of price consolidation, which means the height of price swings goes shorter and closer; In other words, Buying and selling volumes are going close to each other. Convergence, continuity, and symmetry are three inherent properties of symmetric triangle family pattern members.
1. Appearance: The symmetric triangle looks like a scalene triangle; all the three sides and angles are different lengths and are never going to be horizontal or right-angled.2. Trendline: By drawing one rising and one falling trendline, the existence of the symmetric pattern is revealed:
3. Pattern Category: Continues. Symmetrical triangles overwhelmingly behave in the direction of the trend.1) Uptrend (rising at the bottom) The lower side of the triangle is equivalent to the line that connects the higher low points.
2) Downtrend (falling on top): The upper bound is that down trendline which goes through lower highs.
4. Breakout Direction:
Expectation: To remain continuity, upward breakout happens in an uptrend, and down breakout happens in a downtrend. Generally, the supply and demand forces are nearly equal at the end of triangle and the market is ready for a change. Any buyer's or seller's decisions can directly influence the next move in price, and finally, the stronger side will dominate the market. In simple words, the breakout can happen in any direction, and reversal behavior is possible too.By way of illustration: [???]
Failure: It is expected that the price fluctuates and reaches as long as the triangle's height, which is extracted by the difference between the first high and low price point.