symmetrical triangle

A symmetrical triangle is a continuation chart pattern formed when price creates lower highs and higher lows, causing the trendlines to converge into a triangle shape. This pattern reflects a period of consolidation where buyers and sellers are in balance, leading to reduced price volatility before a potential breakout. A decisive breakout above the upper trendline with strong trading volume typically signals bullish continuation, while a breakdown below the lower trendline indicates bearish momentum. Traders often wait for confirmation through a breakout and a successful retest before entering a trade to reduce the risk of false breakouts.