Price is in a consolidating continuation triangle pattern There is a nice bullish trend before this pattern You see dropping interest in trades by the dropping volume bars And dropping volatility found in the dropping ATR values Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement A continuation triangle pattern expects the bullish trend coming into it will continue on the breakout. But be prepared if price movement decides to retrace with a bearish breakout. Buy on a daily close above the triangle Sell on a daily close below the triangle
Trade a full size position if the volume of the breakout candle is at least equal to the average volume.
Use 1/2 size position if the volume is at least 75% of the average volume
If closed candle is more that 1 ATR outside of the pattern, stand aside and wait for price to retrace back to that 1 ATR level to get in. If you are afraid you might miss it put a limit order at the 1 ATR level and price will trigger it as soon as $ pulls back to that level.
SL is 1.5xATR of breaking bar TP is 1xATR of breaking bar At 1st TP close 1/2 of position. Move SL to break-even Let remainder of trade run
Watch trade - cryptocurrency trades all weekend
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1st 1/2 position hit 1 ATR TP @ 9173.45 2nd half position run SL moved to breakeven