Symmetrical triangle is a chart formation in which the slope of the dots ‘high’ and dots ‘low’ narrows and meet at a level so as to form a symmetrical triangle. If the formation is formed then it means being formed ‘higher lows’ and ‘lower highs’ where buyers and sellers alike do not have the power to take control of the market. No one is dominant, both buyers and sellers, so there is no clear trend. Such a situation is referred to as consolidation for the following motion, waiting for a trigger.
symmetrical triangle
In the symmetrical triangle chart above, it appears that neither the buyer nor the seller can not push prices even further in the direction they want. Looks what happens is that the highest points of the lower (lower highs) and bottommost points of the higher (higher lows). Because of the distance the highest points and lowest narrows there will likely be a movement off (breakout) but it is not clear where they lead.
symmetrical triangle
We can take advantage of this condition by placing an order to buy a few points above the level of the price and sell orders at the same time a few points below the price level. This way no matter where the price moves off, we can take advantage of the movement.
From the symmetrical triangle chart above that the price moves upward off. And because we have put an order to buy above the previous price level, we will benefit from the price continues to rise.
So a little explanation about the symmetrical triangle. Hope you can understand after reading this article.