What is Symmetrical Triangle?
A Symmetrical Triangle shows a battle between buyers and sellers where neither side has taken control yet.
Two trendlines slope toward each other: a downward resistance line and an upward support line.
As the price range narrows toward the apex, volatility shrinks until price breaks out sharply.
VISUAL STRUCTURE DIAGRAMSymmetrical Triangle Chart Pattern
Why It Matters for Forex Traders
This pattern often precedes a breakout as price compresses, though the breakout direction is unknown in advance and false breakouts are common.
How to Identify and Apply Symmetrical Triangle
- 1Draw a trendline connecting at least two lower highs across the top.
- 2Draw a trendline connecting at least two higher lows along the bottom.
- 3Wait for a full candle to close outside either trendline before entering your trade.
Practical Forex Example
EUR/USD compresses inside a 60-pip symmetrical triangle for two days. Price suddenly breaks above the top trendline with a strong green candle at 1.0850. A trader enters long targeting a 50-pip rally.
PRO TRADER TIP
Do not guess the breakout direction inside the triangle. Wait for a clear candle close outside the boundary and set your stop loss just inside the opposite trendline.