Lower highs and higher lows squeeze price into a narrowing coil. It usually resolves in the direction of the prior trend.
How to identify it
- At least two lower highs and two higher lows
- Trendlines converge at similar angles
- Volatility and volume contract into the apex
Entry
Trade the close outside either trendline, preferring the prior trend direction.
Stop loss
Back inside the triangle beyond the last swing.
Target
Widest part of the triangle projected from the break.
Invalidation
Breakout reverses and closes through the opposite trendline.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your symmetrical triangle trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.