Symmetrical Triangle

A Symmetrical Triangle is a chart pattern in technical analysis that forms when a cryptocurrency’s price moves into a tighter range, creating converging trendlines with lower highs and higher lows.

How Symmetrical Triangles Work

This pattern represents a period of consolidation where buyers and sellers are in balance. The triangle is formed by drawing a descending resistance line and an ascending support line. As the price nears the triangle’s apex, traders watch for a breakout, either upward or downward, which typically signals the next major move.

Why Symmetrical Triangles Matter

Symmetrical triangles are seen as neutral patterns, meaning the breakout could go in either direction. However, they offer valuable insight into potential volatility ahead. Traders use them to plan for breakout trades, often setting entry points just outside the triangle and placing stop-losses within the pattern.