Bullish Symmetrical Triangle is a chart pattern formed by two symmetrical trendlines that are related to a horizontal line. For more details about this bullish symmetrical triangle, you can read the following article. In addition, you can also read other articles such as Bullish Belt Hold Trading Strategy and How to Recognize It.

What is a Bullish Symmetrical Triangle

The bullish Symmetrical Triangle is a bullish continuation chart pattern. The pattern is formed by two converging trendlines that are symmetrical in relation to the horizontal line. The first line is a bearish trendline that creates resistance, also called the “resistance line of the bullish Symmetrical Triangle”. The second line is a bullish trendline that creates support, also called the “support line of the bullish Symmetrical Triangle”. For the Symmetrical Triangle to be called “bullish”, the movement preceding the Triangle formation must be bullish. A bullish Symmetrical Triangle is confirmed/valid if it has good oscillations between the two lines.
 
Each of these lines must be touched at least twice to validate the pattern. NB: a line is considered “valid” if the price line touches the support or resistance line at least 3 times. This implies that a bullish Symmetrical Triangle is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times). The price objective for the bullish Symmetrical Triangle is determined by the height of the base of the Triangle plotted at the breakout point (exit from the Triangle). To achieve the price objective, another technique consists of drawing parallels to the support line of the bullish Symmetrical Triangle from the first contact with the resistance line.

Difference between Bullish Pennant and Symmetrical Triangle

Here are the differences between bullish pennant and symmetrical triangle. The differences are: Symmetrical Triangle can be considered as just a flag while Pennant is a flag with a Pattern. The pattern here is a large candle on the candlestick chart just before the Pennant begins to form. The height of this candle is much larger than the width of the Pennant. Considering the above, the main difference between the two is that in the case of Pennant the sentiment about the ongoing trend suddenly becomes very strong before a slight pause. This makes Pennant a more reliable continuation patterns than Symmetrical Triangle.

Differences in trading Pennant and Symmetrical Triangle

Pennant-Pennant

It is much easier to predict the direction of the breakout in the case of the Pennant pattern because the Pennant is generally a continuation pattern. If the Pennant pattern appears during an uptrend, the breakout is usually on the upside so the uptrend continues and if the trend is down, the breakout is to the downside.

Symmetrical Triangle

Although Symmetrical Triangle is also considered as a continuation pattern but practically the breakout can happen on either side and hence it is better to be prepared to take position either way.

Characteristics of the Bullish Symmetrical Triangle Pattern

They can be classified as places of indecision. A market pauses for a while and the future direction is in doubt. The forces of supply and demand at that time are usually considered to be almost equal. The following are important when identifying Symmetrical Triangles:
  1. The Symmetrical Triangle pattern consists of two converging trendlines connecting a series of successive peaks and troughs.
  2. These trend lines should have approximately the same slope.
  3. Ideally, volume increases just before or during the breakout from the symmetrical pattern.
  4. Triangles have sides that are symmetrical or the same length.
  5. Triangles have lower highs AND higher lows – at least two of each.
  6. It looks like a funnel, with prices "squeezing" from left to right.

Bullish Symmetrical Triangle Type

A bullish Symmetrical Triangle is a bullish continuation chart pattern, the movement before the Triangle formation must be bullish. On the other hand, a bearish Symmetrical Triangle is a bearish continuation chart pattern, the movement before the Triangle formation must be bearish. A Symmetrical Triangle pattern differs from a descending or ascending Triangle pattern in that the lower and upper trendlines of both Triangles slope toward the center point. A horizontal upper trendline forms in an ascending Triangle predicting a breakout higher.
 
With a descending Triangle, a horizontal lower trendline forms predicting a breakout lower. The trendlines must be equal in their convergence slope when the Symmetrical Triangle forms. A bearish Symmetrical Triangle is a bearish continuation chart pattern. It is formed by two converging trendlines that are symmetrical in relation to the horizontal line. The first line is a bearish trendline that creates resistance, also called the “resistance line of the bearish Symmetrical Triangle”.
 
The second line is a bullish trendline that creates support, also called the “support line of the bearish Symmetrical Triangle”. In order for a Symmetrical Triangle to be called “bearish”, the movement before the Triangle formation must be bearish. A bearish Symmetrical Triangle is confirmed/valid if it has good oscillation between the two lines. Each of these lines must be touched at least twice to validate the pattern.
NB: a line is considered "valid" if the price line touches the support or resistance at least 3 times. This implies that a bearish symmetrical triangle is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times). The price target for a bearish Symmetrical Triangle is determined by the height of the base of the Triangle plotted at the breakout point (exit from the Triangle). To achieve the price target, another technique consists of drawing parallels to the resistance line of the bearish Symmetrical Triangle from the first contact with the support line.
 
The bullish Symmetrical Triangle is a bullish continuation chart pattern. The pattern is formed by two converging trendlines that are symmetrical in relation to the horizontal line. The first line is a bearish trendline that creates resistance, also called the "resistance line of the bullish Symmetrical Triangle". The second line is a bullish trendline that creates support, also called the "support line of the bull Symmetrical Triangle". For a Symmetrical Triangle to be called "bullish", the movement prior to the Triangle formation must be bullish.
 
A bull Symmetrical Triangle is confirmed/valid if it has good oscillation between the two lines. Each of these lines must be touched at least twice to validate the pattern. NB: a line is considered “valid” if the price line touches the support or resistance line at least 3 times. This implies that the Symmetrical Triangle bull is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times). The price objective for the Symmetrical Triangle bull is determined by the height of the base of the triangle plotted at the breakout point. To achieve the price objective, another technique consists of drawing parallels to the Symmetrical Triangle bull’s support line from the first contact with the resistance line.

Advantages of Using Bullish Symmetrical Triangle

The definite advantage of using this pattern is that when it works correctly, you will usually see a sharp break. This is because the buy or sell volume has been building for some time, and the bears/bulls defending the support/resistance level will usually be taken out of their positions. The stop will usually be placed just beyond the level, and once it is stopped, it adds a higher amount of sell or buy to the trade. After learning about the Bullish Symmetrical Triangle, then when trading later you will be able to identify and also make a plan to trade this pattern yourself. So that way, you can register at GIC to trade and enjoy all the benefits such as rebates, bonuses, etc. Don't forget to also follow the GIC Instagram account to get updates on trading every day!