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A symmetrical triangle is a chart pattern characterized by higher lows and lower highs, with two trendlines converging at the same angle. This pattern is typically used as a trend continuation signal. The formation of a symmetrical triangle indicates that market volatility has been compressed over a period of time, suggesting an imminent trend reversal.
Technical features of the "symmetrical triangle" pattern
- A clear trend must exist before the triangle forms to determine the subsequent direction
- At least 4 touches: 2 on the dynamic support line (ascending) and 2 on the dynamic resistance line (descending). The more touches, the more reliable the pattern
- As the price converges, trading volume should gradually decrease
- Although symmetrical triangles usually break out in the direction of the trend, false breakouts in the opposite direction can occasionally occur. For safer trading, it is recommended to wait for a retest of the breakout area (upper or lower boundary) for confirmation.