Elearnmarkets - Financial Market Learning
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis
Symmetrical Triangle Pattern - Meaning, Formation & Trading 1

Symmetrical Triangle Pattern – Meaning, Formation & Trading

Elearnmarkets by Elearnmarkets
October 14, 2022
in Technical Analysis, Charts, Patterns & Indicators
Reading Time: 6 mins read
0
23.3k
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

The symmetrical triangle pattern is a continuation chart pattern like Ascending and Descending Triangle patterns.

This pattern is characterized by two converging trend lines that connect a series of troughs and peaks.

The trend lines should be converging to make an equal slope.

This pattern indicates a phase of consolidation before the prices breakout.

Table Of Contents
  1. What is a Symmetrical Triangle Chart Pattern?
    • Learn about Trend Lines & Chart Patterns using Technical Analysis in just 2 hours by Market Experts
  2. Formation of the Symmetrical Triangle Chart Pattern
  3. Trading with Symmetrical Triangle Chart Pattern
    • Example
    • Stop Loss
    • Price Target
  4. Key Takeaways                         

Let us discuss the formation of  symmetrical triangle pattern and how to trade with it:

Join TMP Join TMP Join TMP

What is a Symmetrical Triangle Chart Pattern?

The Symmetrical Triangle Chart Pattern indicates an ongoing period of price consolidation before the prices breakout.

A bullish symmetrical triangle is a bullish continuation chart pattern, the movement preceding the triangle’s formation must be bullish.

On the other hand, A bearish symmetrical triangle is a bearish continuation chart pattern, the movement preceding the triangle’s formation must be bearish.

The symmetrical triangle pattern is different from a descending or ascending triangle pattern as both triangles’ lower and upper trend lines slope towards the center point.

A horizontal upper trendline is formed in ascending triangles that predict a higher breakout.

With a descending triangle, a horizontal lower trendline is formed that predicts a lower breakout.

Learn about Trend Lines & Chart Patterns using Technical Analysis in just 2 hours by Market Experts

The trend lines should be equal in their convergence slope when a symmetrical triangle is formed.

Formation of the Symmetrical Triangle Chart Pattern

Here is the formation of the Symmetrical Triangle Chart Pattern:

Symmetrical Triangle Pattern

Trading with Symmetrical Triangle Chart Pattern

When trading with Symmetrical Triangle Chart Pattern, there are certain rules to be kept in mind:

  • The converging trend lines should be converging to make an equal slope.
  • The bullish symmetrical triangle should be formed in an ongoing uptrend and the prices should breakout from the upper trend line.
  • The bearish symmetrical triangle should be formed in an ongoing downtrend and the prices should breakout from the lower trend line

Example

Below is the example of the bullish symmetrical triangle formed on the daily chart of Narayana Hrudayalaya Ltd.

We can see how it is formed in an ongoing uptrend and prices breakout from the upper trend line in the direction of the prior trend:

Symmetrical Triangle Chart

Stop Loss

The stop loss is placed right before the breakout point in a symmetrical triangle chart pattern.

Price Target

The price target is equal to the distance from the high and low of the earliest part of the pattern applied to the breakout price point.

The Symmetrical triangle works best with other chart pattern analysis.

Traders when using symmetrical triangles patterns, look for a high volume movement in a share price so the breakout is confirmed.

Other indicators can also help in estimating the duration of the breakout.

For example, the Relative Strength Index is used with the symmetrical triangle to estimate when the stock has become overbought after its breakout.

Key Takeaways                         

  • The Symmetrical Triangle is a continuation chart pattern like Ascending and Descending Triangle patterns.
  • The Symmetrical Triangle Pattern indicates an ongoing period of price consolidation before the prices breakout.
  • The bullish symmetrical triangle pattern should be formed in an ongoing uptrend and the prices should breakout from the upper trend line.
  • The bearish symmetrical triangle should be formed in an ongoing downtrend and the prices should breakout from the lower trend line
  • When trading with Symmetrical Triangle Pattern, there are certain rules to be kept in mind
Tags: chart patternsymmetrical triangle patterntechnical basics
ShareTweetSend
Previous Post

The Ultimate Guide to Triple Top and Triple Bottom Pattern

Next Post

Buyback of Shares Meaning – Ways, Participation, Pros & Cons

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

Technical Analysis in Stock Trading 2
Technical Analysis

Technical Analysis in Stock Trading

May 31, 2023
5.7k
The Ultimate guide to Trading Divergences 3
Technical Analysis

The Ultimate guide to Trading Divergences

May 26, 2023
932
Trading Psychology: Guide to Master Your Mind in 5 Steps 4
Technical Analysis

Trading Psychology: Guide to Master Your Mind in 5 Steps

May 24, 2023
3k
Trading Psychology: 7 Keys to Successful Trading 5
Technical Analysis

Trading Psychology: 7 Keys to Successful Trading

May 22, 2023
2.9k

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Facebook-f Twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Marketshala
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2023 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Get Elearnmarkets App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars

© 2020 Elearnmarkets All Rights Reserved