MODULE 1 - CHAPTER 3

CHART PATTERNS
Symmetrical Triangle

Background:
Put another way, when price action forms a series of
lower swing/pivot highs and higher swing/pivot lows a
Symmetrical Triangle is created. Symmetrical Triangles
can breakout in either direction since this consolidating
pattern has equal sentiment driving the formation.
Within an uptrend, the possibility of a breakout to the
upside can increase due to the overall momentum of
bullish sentiment supported by the potentially
significant amount of underlying support in the chart.

Practical Use:
As with any patterns, Symmetrical Triangle Breakouts
are carefully assessed by the technical analyst because
of their ability to produce subsequent upside or
downside price action. Analysts will use other charting
cues to place the odds in their favor of the upside price
movement.

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