The symmetrical triangle is one of the most common chart patterns that traders encounter. Unlike ascending and descending triangles that have directional biases, the symmetrical triangle is neutral until it breaks out. In this guide, we will cover how to identify, analyze, and trade symmetrical triangles effectively.
What is a Symmetrical Triangle?
A symmetrical triangle forms when price creates lower highs and higher lows that converge toward a single point called the apex. The pattern looks like a coil or a contracting cone, representing a battle between buyers and sellers with neither side winning until a breakout occurs.
Key characteristic: Both trendlines angle toward each other at roughly equal rates. The upper trendline descends while the lower trendline ascends, creating a symmetrical appearance. This pattern can break in either direction.
How to Identify a Symmetrical Triangle
To properly identify a symmetrical triangle, look for these characteristics:
- Lower highs: Each rally peak is lower than the previous one
- Higher lows: Each decline bottom is higher than the previous one
- Converging trendlines: Upper and lower lines angle toward each other
- At least four touch points: Two on each trendline minimum
- Decreasing volume: Volume typically contracts as the pattern develops
Symmetrical Triangle vs Other Triangles
Symmetrical vs Ascending Triangle
Ascending triangles have a flat top (horizontal resistance) and rising bottoms. They are typically bullish. Symmetrical triangles have both lines angled and can break either way.
Symmetrical vs Descending Triangle
Descending triangles have a flat bottom (horizontal support) and falling tops. They are typically bearish. Symmetrical triangles are neutral until breakout.
Trading the Symmetrical Triangle
Breakout Direction Prediction
While the pattern itself is neutral, you can look for clues about breakout direction:
- Prior trend: The pattern often continues in the direction of the prior trend
- Volume clues: Higher volume on up moves suggests bullish breakout
- Price action: Where price spends more time within the triangle can indicate direction
Entry Strategy 1: Breakout Entry
Wait for price to break out of the triangle and enter in the breakout direction.
Breakout Entry Setup
- Wait for a candle to close beyond the trendline
- Confirm with volume spike on the breakout
- Enter on the breakout candle close or next open
- Stop loss on the opposite side of the triangle
Entry Strategy 2: Retest Entry
After the initial breakout, price often returns to test the broken trendline as new support or resistance.
Retest Entry Setup
- Wait for breakout confirmation
- Let price pull back to the broken trendline
- Enter when price bounces off the line
- Tighter stop loss possible with this entry
Price Target Calculation
Calculate your price target using the measured move technique:
- Measure the height of the triangle at its widest point (the base)
- Project this distance from the breakout point
Target Calculation Example
- Triangle high (base): $60.00
- Triangle low (base): $50.00
- Pattern height: $10.00
- Upside breakout at $56: Target = $66.00
- Downside breakout at $54: Target = $44.00
Complete Trading Example
Symmetrical Triangle Trade on Stock ABC
Stock ABC forms a symmetrical triangle over 5 weeks:
- Prior trend: Uptrend
- High 1: $70, High 2: $68, High 3: $66
- Low 1: $60, Low 2: $62, Low 3: $64
- Pattern height: $10.00 (at base)
Trade execution:
- Breakout occurs upward at $66.50 with volume
- Entry: $67.00
- Stop loss: $63.00 (below the lower trendline)
- Target: $76.50 ($66.50 + $10)
Risk: $4.00 | Reward: $9.50 | R:R: 2.38:1
Volume Analysis
Volume provides important clues for symmetrical triangles:
- During formation: Volume should decrease as the pattern develops (coiling)
- At apex: Volume often reaches its lowest point near the apex
- On breakout: Volume should spike significantly to confirm the move
- Post-breakout: Continued volume supports trend continuation
Important: A breakout without volume confirmation has a higher failure rate. Always check volume before entering a symmetrical triangle trade.
Timing the Breakout
Symmetrical triangles typically break out between the halfway point and 75% of the way to the apex:
- Too early breakout: May not be a valid pattern yet
- Too late breakout: Near-apex breakouts are less reliable
- Sweet spot: Breakout in the middle two-thirds of the pattern
Common Mistakes to Avoid
- Predicting breakout direction: The pattern is neutral; let the market show you
- Entering before breakout: Wait for confirmation
- Ignoring volume: Low volume breakouts often fail
- Improper trendline drawing: Make sure lines connect valid pivot points
- Trading near the apex: Breakouts very close to the apex are less reliable
Failed Symmetrical Triangles
False breakouts are common with symmetrical triangles. Protect yourself by:
- Requiring a close beyond the trendline, not just a wick
- Confirming breakout with volume
- Using appropriate stop losses
- Waiting for a retest entry for safer entries
Track Your Triangle Trades
Pro Trader Dashboard helps you log and analyze all your chart pattern trades. See which setups work best and improve your performance.
Summary
The symmetrical triangle is a versatile pattern that can break in either direction. Look for converging trendlines with lower highs and higher lows, wait for a confirmed breakout with volume, and use the measured move technique for price targets. The key is patience: let the pattern develop and wait for the market to show its hand before entering.
Want to learn more triangle patterns? Check out our guides on ascending triangles and descending triangles.