Symmetrical Triangle Pattern Forex Trading Strategy

Symmetrical patterns are widely used in forex trading.

It’s considered to be a continuation pattern that forms during an established up or down trend.

The pattern itself consists of two converging trend lines.

How it looks

symmetrical-forex-patterns1

Trading Strategy

The symmetrical forex  strategy reveals where to enter a buy or sell trade, where to place your stop loss and how to calculate your price objective.

Uptrends

  • Enter a limit order (buy stop) 5 pips above the upper trend line (resistance)
  • Set a protective stop loss 2 pips below the lower trend line (support)
  • Price objective – Measure the total width of the triangle pattern in pips (this will be your profit target)

Download

Download the WATL TrendLines indicator for Metatrader 4.

Please take a look at the EUR/GBP 4 hour chart below.

symmetrical-pattern-forex-strategy

Tip: Aggressive buyers may initiate a buy order near the lower trend line of the pattern with a very tight stop loss just below the lower trend line.

You can use the opposite strategy for sell orders, i.e., open sell order near the upper trend line in downtrends with tight stop loss being placed just above the upper trend line.

Downtrends

  • Enter a limit order (sell stop) 5 pips below the lower trend line (support)
  • Set a protective stop loss 2 pips above the upper trend line (resistance)
  • Price objective – Measure the total width of the triangle pattern in pips (this will be your profit target)
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