What is symmetrical triangle pattern?

A symmetrical triangle pattern is a chart pattern that is commonly used in technical analysis to identify potential trend reversals. It is formed by a series of price movements in which the highs and lows of the security's price converge towards a central point, creating two trendlines that intersect at an apex.

The symmetrical triangle pattern is thought to be a neutral pattern because it does not indicate a clear direction for the security's price. Instead, it indicates that the security's price may be consolidating and that a breakout in either direction is possible. When the price breaks through one of the trendlines, it may signal the beginning of a new trend.

It is important to note that the symmetrical triangle pattern is not a guarantee that the price of a security will rise or fall. It is simply a pattern that may suggest a potential trend reversal and should be used in conjunction with other technical and fundamental analysis tools to confirm a buy or sell signal. In addition, symmetrical triangle patterns can be subject to interpretation and may be influenced by the biases and expectations of the analyst. As a result, different analysts may come to different conclusions about the same data.