Do you see the three arrows pointing to resistance on the horizontal line on the top? This is a great triangle and one that I would trade every time if it would meet all of the rules of this strategy. Or the higher lows at the bottom? Also, please give this strategy a 5 star if you enjoyed it! From a 1-hour to daily time frame 30-60 pip stop is ideal. Triangle patterns in forex, stocks, options, and futures form on all time frames and take very little effort to spot. Exit/ Stop Loss When you start to see the price consolidating than that would a great place to exit the trade: As you can see, that is what happened here so we would exit this trade for a 89 pip winner. Find out where the price action is bouncing off.
( 3 votes, average:.67 out of 5) Loading. Place your stop loss anywhere between 30-60 pips from your entry. This triangle has already formed but what does it look like before it gets there? I just want you to know that they come in different shapes and sizes Rule #2 Of the Breakout Triangle Strategy : Wait for a Break of the Triangle Pattern Now all you need to do is get your popcorn out and wait for. Different, triangle, patterns in, trading mmetrical, triangle : The price will bunch up and converge together. Here is an example: cending, triangle : There is resistance at the top and higher lows that form at the bottom. Just lines that you draw and price action. Check this out: Now when this happens: You will draw the bottom line at this area to draw you a triangle, and in this case, it will be an ascending triangle. If you go back in your charts and draw some of these you will find that when this break occurs more often than not the break happens fast and it is usually very powerful. This example broke out above the triangle so that we will be looking for a BUY trade. Basically, there is no clear trend forming and thus it will keep squeezing smaller and smaller following the trend lines. Rule #1: In Breakout Trading : Find a forming Triangle (ascending descending, or symmetrical) If you are having trouble with this concept simple look at the examples above for clarification.
Triangle patterns are easy to find and upon the break of the triangle they usually end up moving a great amount. Let us know what you think of this strategy. The earlier you get in the better! You will see lower highs and higher lows. This can be adjusted depending on what time frame you are trading. Trading Strategy Guides Like this Strategy?