symmetrical triangle is characterized by two converging trendlines, with the upper trendline connecting a series of lower highs and the lower trendline connecting a series of higher lows. The pattern is formed as the price swings back and forth between the two trendlines, creating a triangle shape. As the price approaches the point of convergence, or the "apex" of the triangle, the trading range narrows, indicating that a breakout is likely to occur.
Traders often watch for a break above or below the triangle to signal a potential trade. A break above the upper trendline would be considered bullish and a break below the lower trendline would be considered bearish. The size of the triangle can also provide an indication of the potential magnitude of the breakout. The height of the triangle from the highest high to the lowest low is added or subtracted from the point of the breakout to give a potential price target.
Please note that a symmetrical triangle is a pattern and not a strategy by itself. Traders should use it in conjunction with other technical and fundamental analysis before making any trade decision.
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