Symmetrical triangles consist of two lines of equal slope converging to a point in the future. The result is the appearance of a sideways triangle with the base to the left and the point the right.
A symmetrical triangle implies that the market cannot decide whether to break up or down. Once the triangle is broken by the price, there may be a substantial move in the direction of the break.
Symmetrical triangles can be used to interpret large breaks in price. If the price breaks through the triangle to the downside, there may be a large move down. Similarly, if the price breaks through the triangle to the upside, there may be a large move up. We may use these to help identify trend or to confirm a Gartley or butterfly pattern.
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