Ani
Short

Symmetrical Triangle

FX:USDJPY   U.S. Dollar/Japanese Yen
407 4 3
3 years ago
This is for my own reference and to increase my win loss ratio on the site. Please ignore

Symmetrical Triangle is longer than three months

1. "Usually, it takes longer than a month to form a triangle. Seldom will a triangle last longer than three months. If a triangle pattern does take longer than three months to complete, Murphy advises that the formation will take on major trend significance"

2. Break up is too near consolidation of Apex ie usdjpy             is weak

3. Break up does not have volume

4. Symmetrical Triangles normally have a false break out.

Occurrence of a Breakout - Technical analysts pay close attention to how long the triangle takes to develop to its apex. The general rule, as explained by Murphy, is that prices should break out - clearly penetrate one of the trendlines - somewhere between three-quarters and two-thirds of the horizontal width of the formation.6 The break out, in other words, should occur well before the pattern reaches the apex of the triangle. . Adherence to this rule is strongly advised by Yager, She adds that the closer the breakout occurs to the apex the higher the risk of a false breakout

If prices remain within the trendlines beyond the three-quarters point of the triangle, technical analysts will approach the triangle with caution. In much the same manner as Yager, Murphy warns that if prices don't breakout of the trendlines before that point, the triangle "begins to lose its potency and prices will simply drift out beyond the apex with no surge in either direction.
3 months ago
Trade closed: stop reached
Bou_zid
3 years ago
nice explanation. in other words why do you think it's gonna stay short ? the triangle analysis is not enough to take a position.i dont mean to be rude . you might be right. i dont know.
Reply
Ani Bou_zid
3 years ago
True and after reading....."begins to lose its potency and prices will simply drift" hmmm not too sure and will wait for confirmation via 20 MA on the 4H before I enter a trade
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Bou_zid Ani
3 years ago
very wise decision. hope the best for your trades. try to look on monthly frame.
Reply
failathon PRO Ani
3 years ago
Breakout has failed to soar past 61.8% (99.924), and is struggling to keep upward momentum, so it looks juicy ...
... but I'm wondering if it bounces off 50.0% (98.752) if this will go nowhere
Reply
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