The Symmetrical Triangle is a common chart pattern used in technical analysis, signaling a period of consolidation before the price breaks out. It forms when two trendlines converge: the upper one descending and the lower one ascending, creating a triangle shape. This pattern suggests indecision in the market, with neither buyers nor sellers dominating.

To trade the Symmetrical Triangle, first, identify the pattern as it forms. Look for at least two highs and two lows converging towards a point. Once the price nears the apex (the point where the trendlines meet), watch for a breakout in either direction.

Breakouts can occur upward or downward, so it’s crucial to wait for confirmation. A common strategy is to enter a trade when the price breaks above or below the triangle with significant volume. Set stop-loss orders just outside the opposite trendline to limit risk.

For profit targets, measure the height of the triangle (the distance between the initial high and low) and project this distance from the breakout point. Traders can exit when this target is reached or use a trailing stop to capture more gains if the price continues trending. Always manage risk carefully, as false breakouts are common with this pattern.