Understanding Symmetrical Triangle Patterns in depth

This chart illustrates a classic example of a symmetrical triangle pattern formed over several years, with simple compression trendline (CT) and trigger (T) lines drawn in white for clarity.

Key learning points from the structure:
- Symmetrical Triangle Formation: The pattern is defined by converging trendlines representing successive lower highs and higher lows, indicating a period of price consolidation and market indecision
- Supply Converts to Demand: The boxed area initially acted as supply, where price faced resistance repeatedly. Over time, after multiple interactions and a structural shift, this area began to act as demand, offering support to subsequent price movements. This showcases how prior resistance can evolve into a support zone as market dynamics shift.
- Pattern Context: A large symmetrical triangle is forming above this zone, highlighting sustained equilibrium between buyers and sellers, and price compressing within clearly defined boundaries.
- Educational Note: Patterns like these offer valuable case studies for understanding consolidation phases, the role of supply and demand flipping, and how market structure can evolve. They can be identified and studied without making directional assumptions, serving as an excellent foundation for technical analysis practice.

This post is aimed purely at technical education, emphasizing the process of chart marking, pattern recognition, and structural interpretation, without making market predictions or outcome forecasts.