The symmetrical triangle has two equal sides sloping towards each other at the same angle. It favors neither a downside nor an upside breakout.

As a result, traders should look for it to signal a continuation of the move in the original direction; or, in other words, the move of the overall trend.

In the chart below, USD/CHF formed a large symmetrical triangle over a six-month period before breaking above resistance to the upside. It was difficult to know which direction the price would breakout. Traders can pay attention to the original trend and trade along the direction of the overall trend.

The trade signal provided by a symmetrical triangle should come as no surprise, since it is a rising support line and a descending resistance line converging as the chart moves to the right. Eventually one of these technical levels must be broken, at which point the trader operates just as if the line were a simple trend line. Breakouts from a triangle that has become narrow can be decisive, because buying or selling interest has accumulated while the price has consolidated.