What kind of market behavior does a symmetrical triangle indicate?

A symmetrical triangle indicates a period of sideways price action, characterized by converging trendlines that reflect a balance between buying and selling pressures. This pattern forms when the price action experiences decreasing volatility over time, as the market oscillates between the upper and lower trendlines. Traders often interpret this behavior as a period of consolidation or indecision, where neither buyers nor sellers have gained enough momentum to push the price decisively in one direction.

During this time, the market is not trending strongly in any particular direction, which is why it is referred to as sideways price action. As the triangle completes, it typically signals an impending breakout, which can occur in either direction. This is indicative of potential future volatility, but the symmetrical triangle itself does not inherently represent extreme volatility, strong trends, or complete stagnation outside of the consolidation phase.