Symmetrical Triangle
A formation with a falling upper boundary and a rising lower boundary converging at similar angles.
How it is identified
Test: successively lower highs and successively higher lows converging toward an apex
Unit
qualitative
In depth
A symmetrical triangle is explicitly neutral in shape, which makes it the honest member of the triangle family: nothing about it suggests a direction, and practitioners treat it as a compression of volatility awaiting resolution. Traders often place orders on both sides for that reason, accepting that one will be a losing trade. The apex must not be approached too closely, since the pattern loses definition and the eventual move often begins before the boundaries meet. It is a description of narrowing range and predicts nothing.
Worked example
Highs falling from ₹534 to ₹512 to ₹498 and lows rising from ₹480 to ₹491 to ₹502. The range has compressed from ₹54 to ₹4 — a state that cannot persist, though which boundary gives way is unknown.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Symmetrical Triangle” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.