Symmetrical Triangle Pattern what is it/ how to draw it? 2/8

Symmetrical Triangle Pattern what is it/ how to draw it? 2/8 Bullish Charting Patterns

A symmetrical triangle is a chart pattern that forms when the price of an asset converges with two trendlines that are moving towards each other, creating a triangular shape. Here’s how it works:

Converging Trendlines: The upper trendline is formed by connecting the descending highs, and the lower trendline is formed by connecting the ascending lows. These trendlines converge at a point called the apex.

Volume Decrease: As the pattern develops, trading volume typically decreases, indicating a period of consolidation and indecision in the market.

Breakout: Eventually, the price breaks out from the triangle, which can occur in either direction – upwards or downwards. The direction of the breakout often dictates the future trend of the asset.

Symmetrical triangles are considered continuation patterns, meaning they usually signal that the prevailing trend (upward or downward) before the pattern will continue after the breakout. Traders often use the height of the triangle (the distance between the initial high and low points) to estimate the potential price target following the breakout.

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