Tradingstrategyguides

USDCHF 1D TRIANGLE BREAKOUT TRADES

OANDA:USDCHF   U.S. Dollar / Swiss Franc
Triangles are repeatable trading chart patterns.
Triangles are consolidation chart patterns that can breakout either direction.

Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
Whatever 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 ).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility ) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.

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 the average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
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 – After Breakout candle – if price closes back into chart pattern close trade
*9 - 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.
d – If Price returns back into chart pattern close trade before SL is hit.

Comments

Thanks Tim for nice analysis. I wish you good luck and CU Soon.
Reply
@nrmt2010, Thanks for your comment.
Reply
To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75% -- How to do .. I am using default volume chart with 20 sma volume in tradign view
Reply
@kvenkatus, Sorry, the volume has a MA setting that creates a line going on the top third of the volume bars. Each time you add the volume indicator to your chart you need to add that MA line to it. The ATR is what you use to "divide smaller # into larger # = 75%" if the bar does not reach the 100% or above.
Reply
I will be following usdchf with this overall analysis
Reply
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