Symmetrical Triangles can be characterized as areas of indecision. A market pauses and future direction is questioned. Typically, the forces of supply and demand at that moment are considered nearly equal. The Following is a Typical Symmetrical Triangle Pattern
- Attempts to push higher are quickly met by selling, while dips are seen as bargains.
- Each new lower top and higher bottom becomes more shallow than the last, taking on the shape of a sideways triangle. (It's interesting to note that there is a tendency for volume to diminish during this period.)
- Eventually, this indecision is met with resolve and usually explodes out of this formation (often on heavy volume.)
HERE IS A SAMPLE CHART WITH A SYMMETRICAL TRIANGLE FORMATION