Chart Patterns

# Symmetrical Triangle

Next, in this section, we will start with the different triangle patterns formed in the price chart.

But before we start, let us first understand the concept of a triangle pattern.

### What are triangles patterns?

Triangles are considered to be intermediate patterns. This means that they take longer than 3 weeks to form but generally less than 3 months. A minimum of two top and two bottom points are required to construct a triangle. The minimum requirement of a triangle is 4 reversal points.

There are three types of triangles:

• Symmetric
• Ascending
• Descending

### What is a Symmetric Triangle?

Symmetrical Triangles can be bullish or bearish continuation chart patterns that are developed by two trend lines that converge. These two trend lines join the peaks and troughs and they occur in the direction of the ongoing trend.

### How to interpret this pattern?

• It consists of 1 down trendline and 1 up trendline – which converge.
• A closing basis breakout should be considered important while trading them.
• The completion of the pattern is marked when prices close either below the support lines along the troughs or above the resistance line along the peaks.
• The breakout from the triangle pattern should be mostly between the two thirds of the length of the triangle.
• Volume must diminish while pattern formation and should significantly increase as the pattern completes.

Example:

Below is an example of Symmetrical Triangle formed in daily chart of Narayana Hrudayalaya Ltd.:

### Profit Target and Stoploss:

Price Target: Vertical distance of the base is the minimum target that the price should move on breakout. The stop loss can be set at the opposite end of the breakout point.

Symmetrical triangles differ from ascending triangles and descending triangles in the sense that the upper and lower trend lines are both sloping towards a center point. Whereas, ascending triangles have a horizontal upper trend line, that predicts a potential breakout higher, and descending triangles have a horizontal lower trend line, that predicts a potential breakdown lower.

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