Visual Guide to Chart Patterns

Symmetrical Triangles

Symmetrical triangles take pattern recognition to a new level. We ditch horizontal trendlines and use diagonal ones to outline the pattern.

Exhibit 10.1 shows a pair of symmetrical triangles swimming in a price sea. They remind me of angelfish I had in my 55-gallon aquarium when I lived near Boston.

I like the red triangle at C. Price touches two sloping trendlines that merge at the triangle apex. Directly above the apex, in this example, is a price peak. I have mentioned this apex and turning behavior before because it works well and gives traders a clue where the trend might shift.

KEY POINT:

A symmetrical triangle ...