The symmetrical triangle has converging descending resistance and ascending support lines, forming a symmetrical shape. Direction is uncertain; the breakout direction determines subsequent movement — tradeable in both directions.
Balanced bullish and bearish forces during consolidation. Both sides contest within a narrowing range, waiting for a breakout. Usually resolves in the direction of the prior trend, but reversal is possible — wait for confirmation.
Enter in the breakout direction on volume confirmation (win rate 63%). Breakout up = buy; breakout down = short. Stop-loss on the opposite side of the triangle. Target = triangle height measured from breakout.
Never anticipate the direction inside the triangle. Wait for a clear, volume-confirmed breakout. Breakouts near the apex are less reliable.