Triangles, Ascending Triangle, Descending Triangles and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction. Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart)
Trade Management after there is a breakout candle close 1 - Position size (compare volume bar to volume ma line) a - Breakout candle must be 100% of average volume for a full position size b - If 75% of average volume then ½ position size 2 - Enter two trades 3 - SL for both trades will be 1.5 x ATR 4 - 1st trade TP will be 1 x ATR 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price 6 - When 1st TP hit – move 2nd trade SL to breakeven 7 - Adjust the 2nd trade SL to follow price *8 - When breakout candle is more than 1 ATR from breakout candle open a - Enter 1st trade at candle close with ½ position size b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open c – Price should pullback to that pending limit order for 2nd trade