Symmetrical Triangle

A symmetrical triangle is a chart formation where the downward sloping resistance that connects the price’s highs is met by an upward sloping support that connects the lows. Here, both lines converge at the midpoint of the triangle’s base. Neither buyers nor sellers are seen to be the more aggressive ones. A breakout to the direction of the present trend usually occurs following such formation. However, once in a awhile a breakout towards the opposite direction of the present trend occurs. Either way, the price tends to reach a target which is about the length of the base of the triangle projected from the point of breakout.