Buy @ 1300 T/P 1325.92 S\L 1383
Sell @ 1283.65 T/P 1258.11 S\L 1300
How to Use Triangles
triangles occur in uptrend and downtrends. Since they can be continuation or reversal patterns, traders wait for the price to break out of the pattern to indicate which direction it is going.
Since continuation triangles occur more often than reversal triangles, focus more on breakouts to the upside during uptrend and breakouts to the downside during downtrends.
To draw a triangle there needs to be at least two swing highs and two swing lows. Trend lines are drawn along the highs and lows, respectively, and extend out to the right. The price may make a couple more swings within the triangle. Re-draw the trend line, if needed, to accommodate these new price swings.
When the price moves above the upper trend line it signals the price is likely to move higher. The pattern is complete. If the price drops below the lower trend line it signals the price is likely to continuing dropping.
Symmetric triangles are created when both trend lines are moving towards each other.
An ascending triangle occurs when the lower trend line is rising while the upper trend line is horizontal. This shows that swing lows are rising but the rallies are stopping near the same resistance level.
A descending triangle is when the upper trend line is sloped downward, while the bottom trend line is horizontal.
With all three types of triangles, take a trade when the price breaks out of the pattern. The exact breakout price is subjective, as tiny alterations in how the trendline is drawn will alter the breakout price level.
Place a stop loss just outside the pattern, on the opposite side from the breakout. For example, if buying an upside breakout, place a stop loss just below the lower trendline. If going short on a downside breakout, place a stop loss just above the upper triangle trendline.
Price Target
The height of a triangle at its base, or widest part, provides some clues as to how far the price could run following the breakout. To get this estimate, add the height of the pattern to the breakout point in the event of an upside breakout. Subtract the height of the triangle from the breakout point for a downside breakout.
Use the swing low and swing high at the base of the pattern to make this estimate, instead of measuring the distance between trendlines.
RadioForex t.me/radioforex :o:
Sell @ 1283.65 T/P 1258.11 S\L 1300
How to Use Triangles
triangles occur in uptrend and downtrends. Since they can be continuation or reversal patterns, traders wait for the price to break out of the pattern to indicate which direction it is going.
Since continuation triangles occur more often than reversal triangles, focus more on breakouts to the upside during uptrend and breakouts to the downside during downtrends.
To draw a triangle there needs to be at least two swing highs and two swing lows. Trend lines are drawn along the highs and lows, respectively, and extend out to the right. The price may make a couple more swings within the triangle. Re-draw the trend line, if needed, to accommodate these new price swings.
When the price moves above the upper trend line it signals the price is likely to move higher. The pattern is complete. If the price drops below the lower trend line it signals the price is likely to continuing dropping.
Symmetric triangles are created when both trend lines are moving towards each other.
An ascending triangle occurs when the lower trend line is rising while the upper trend line is horizontal. This shows that swing lows are rising but the rallies are stopping near the same resistance level.
A descending triangle is when the upper trend line is sloped downward, while the bottom trend line is horizontal.
With all three types of triangles, take a trade when the price breaks out of the pattern. The exact breakout price is subjective, as tiny alterations in how the trendline is drawn will alter the breakout price level.
Place a stop loss just outside the pattern, on the opposite side from the breakout. For example, if buying an upside breakout, place a stop loss just below the lower trendline. If going short on a downside breakout, place a stop loss just above the upper triangle trendline.
Price Target
The height of a triangle at its base, or widest part, provides some clues as to how far the price could run following the breakout. To get this estimate, add the height of the pattern to the breakout point in the event of an upside breakout. Subtract the height of the triangle from the breakout point for a downside breakout.
Use the swing low and swing high at the base of the pattern to make this estimate, instead of measuring the distance between trendlines.
RadioForex t.me/radioforex :o: