As of 12/04/2020
  Indus: 30,218 +248.74 +0.8%  
  Trans: 12,742 +155.26 +1.2%  
  Utils: 856 -10.76 -1.2%  
  Nasdaq: 12,464 +87.05 +0.7%  
  S&P 500: 3,699 +32.40 +0.9%  
YTD
 +5.9%  
 +16.9%  
-2.6%  
 +38.9%  
 +14.5%  
  Targets    Overview: 11/30/2020  
  Up arrow30,700 or 28,250 by 12/15/2020
  Up arrow13,500 or 11,700 by 12/15/2020
  Down arrow830 or 925 by 12/15/2020
  Up arrow12,500 or 11,400 by 12/15/2020
  Up arrow3,750 or 3,400 by 12/15/2020
CPI (updated daily): Arrows on 11/2/20
As of 12/04/2020
  Indus: 30,218 +248.74 +0.8%  
  Trans: 12,742 +155.26 +1.2%  
  Utils: 856 -10.76 -1.2%  
  Nasdaq: 12,464 +87.05 +0.7%  
  S&P 500: 3,699 +32.40 +0.9%  
YTD
 +5.9%  
 +16.9%  
-2.6%  
 +38.9%  
 +14.5%  
  Targets    Overview: 11/30/2020  
  Up arrow30,700 or 28,250 by 12/15/2020
  Up arrow13,500 or 11,700 by 12/15/2020
  Down arrow830 or 925 by 12/15/2020
  Up arrow12,500 or 11,400 by 12/15/2020
  Up arrow3,750 or 3,400 by 12/15/2020
CPI (updated daily): Arrows on 11/2/20

Bulkowski on Symmetrical Triangles

 

For more information on this pattern, read Encyclopedia of Chart PatternsEncyclopedia of Chart Patterns book., pictured on the right. The book has a chapter dedicated to symmetrical triangles.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

Statistics updated on 8/27/2020.

Symmetrical triangles, sometimes called coils, appear often on the historical price chart but performance is awful.

Score your pattern for
performance

Symmetrical triangle chart pattern

Symmetrical Triangle Chart Pattern

Symmetrical Triangles: Important Bull Market Results

Overall performance rank for up/down breakouts (1 is best): 36 out of 39/34 out of 36
Break even failure rate for up/down breakouts: 25%/37%
Average rise/decline: 34%/12%
Throwback/pullback rate: 62%/65%
Percentage meeting price target for up/down breakouts: 58%/36%

The above numbers are based on over 3,000 perfect trades. See the glossary for definitions.

Symmetrical Triangles: Identification Guidelines

CharacteristicDiscussion
Price trendCan be any direction leading to the chart pattern.
ShapeTriangular. Prices move between two converging trendlines.
TrendlinesTwo trendlines bound prices; the bottom trendline slopes up and the top one slopes down.
CrossingPrice must cross the pattern from side to side, filling the triangle with price movement, not white space.
TouchesPrice must touch one trendline at least three times and the other trendline at least twice, forming distinct valleys and peaks.
VolumeTrends downward 84% to 86% of the time.
BreakoutUpward 60% of the time and 74% of the way to the triangle apex (for both breakout directions).

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Symmetrical Triangles: Trading Tips

Trading TacticExplanation Symmetrical triangle measure rule
The Measure Rule
Measure ruleCompute the height from the highest peak (point A in The Measure Rule figure to the right) to the lowest valley in the pattern (B) then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. The figure shows an upward breakout with target price C.
Breakout volumePatterns with heavy breakout volume (above the 30-day average) do better.
Yearly lowTriangles with downward breakouts within a third of the yearly low perform best.
Trend startTriangles perform best post breakout when they appear at the start of trends.
Throwbacks and pullbacksThrowbacks and pullbacks hurt post breakout performance.

 

Expect the market to turn when it reaches the apex of the triangle. See Triangle Apex and Turning Points.

 

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Symmetrical triangle chart pattern example

Symmetrical Triangles: Example

The figure to the right shows an example of a symmetrical triangle chart pattern.

The consolidation pattern of the symmetrical triangle forms as volume recedes. Then, price breaks out downward, but within a few days, price reverses and shoots out the top of the symmetrical triangle, busting the pattern and leading to a strong move upward.

Busted patterns (when the breakout is in one direction only to see price reverse and breakout in the opposite direction) often result in strong moves. However, symmetrical triangles have a tendency to double bust -- the final breakout direction is the same as the original one.

 

-- Thomas Bulkowski

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Symmetrical Triangles: Other Examples

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

Copyright © 2005-2020 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.

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