Symmetrical Triangle Chart patterns

In this blog Global Market Astro explains Triangle chart pattern formed in market trend charts.

TRIANGLES-EXPLAINED:

As the name clearly explains, these patterns form the shape of a triangle. These chart patterns are formed from the convergence of two trend lines being flat, ascending or descending, the price of the security moving between these trend lines.

There are three different types of triangles such as

1) Symmetrical triangle

2) Ascending triangle

3) Descending triangle

SYMMETRICAL TRIANGLE:

The symmetrical triangle is usually a continuation pattern that indicates a period of consolidation in a trend followed by a continuation of the former trend. It is formed by the convergence of a descending resistance line and ascending support line. The two trendlines causing the formation of this triangle should have a similar slope converging at a point termed as the apex. The price of the security will usually oscillate between these trendlines, towards the apex, and will breakout in the direction of the prior trend. 

If preceded by a downward trend, the focus should be on a break beneath the ascending support line. If preceded by an upward trend, look for a break above the descending resistance line. But, this pattern doesn't always lead to a continuation of the prior trend. A break in the opposite direction of the previous trend should signal the formation of a new trend. 

Above is an example of a symmetrical triangle that is headed by an upward trend. The first part of this pattern is the creation of a high in the upward trend, which is followed by a sell-off to a low. The price then moves to another high that is lower than the first high and again sells off to a low, which is higher than the previous low. At this point the trendlines can be drawn, which forms the apex. The price will continue to bounce between these lines until breakout. 

The pattern gets completed when the price breaks out of the triangle - look for an increase in volume in the direction of the breakout. This pattern is also susceptible to a return to the previous support or resistance line that it just broke through, so make sure to watch for this level to hold if it does indeed break out. 

Source :https://www.globalmarketastro.com/blog/symmetrical-triangle-chart-patterns/