Technical Glossary / Chart Patterns
Symmetrical Triangle
Converging lower highs and higher lows, a pause whose direction comes from the break.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A symmetrical triangle is two trendlines sloping toward each other: lower highs and higher lows. It is a contraction. Unlike the ascending and descending versions, the classic pattern does not pick a side. The prior trend is a bias. The break is the decision.
How to identify it
At least two highs and two lows, each pair touching a line, and the lines meeting to the right. Price spends less range as it moves toward the apex.
Bullish reading
A close above the upper line, especially in an uptrend, is the bullish resolution. Risk under the last higher low.
Bearish reading
A close under the lower line is the bearish resolution. Risk above the last lower high.
Common mistakes
Guessing the side near the apex. There is almost no range left, and the break is often a fake.
Limitations
Triangles fail and reform. A break back inside the lines cancels the signal you just took.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.