One of the weakest patterns in technical analysis is the equilateral or symmetrical triangle pattern. Its weak because unlike the other types of triangle patterns, the symmetrical triangle pattern does not give a clear advance indication of the direction of the breakout. It is, above all, a pattern of indecision.
The pattern is seen on the weekly Dollar index chart. The upper trend line A is validly positioned as a downtrend line. The lower trend line B is validly placed as an uptrend line. This shows that the bull and the bears are about evenly balanced. Lacking any other features, the symmetrical triangle shows market indecision where neither the bulls or the bears can gain dominance. However, once the breakout starts the move is often very quick.
Like all triangle patterns, the vertical base of the triangle is measured and this value is used to set the upside and downside targets. For the dollar index this suggests a downside target near 0.885. The potential upside target is near 1.02. These targets are calculated from the apex of the triangle. This is a weekly chart and the apex of the triangle develops around the end of January 2016. Thus suggests a significant breakout move will develop before the end of January 2016.