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Symmetrical Triangle Forming

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A symmetrical triangle is composed of a diagonal falling upper trendline and a diagonally rising lower trendline. Lower highs meets higher lows. As the price moves towards the apex, it will inevitably breach the upper trendline for a breakout and uptrend on rising prices or breach the lower trendline forming a breakdown and downtrend with falling prices. To avoid head fakes, it is important to have a volume spike and at least two candlestick closes beyond the trendline to confirm a true break. Symmetrical triangles tend to be continuation break patterns, meaning that they tend to break in the direction of the initial move before the triangle formed.

Read more: Pennant https://www.investopedia.com/terms/p/pennant.asp#ixzz4ttyE1qUY