Note that this strategy works just as well with a descending triangle, you’ll just have to flip the pattern around for a downside breakout. We can also use the breakout bar(s) to place a stoploss. We also see prices pushing against the resistance level formed by the similar highs.įinally, the resistance gives way, and prices through.įor trading, we would look to enter near the point of breakout, keeping an eye for strong price action and volume to support the breakout. In the example above, we see a prior uptrend, so we know the odds for an upside breakout are higher.Īs the ascending triangle forms, we see a series of higher lows (and similar highs) forming, showing a gradual build-up of bullish pressure. For this setup, we will be looking to enter just as the breakout happens. Our first strategy for the triangle price pattern is to enter on the breakout of an ascending triangle or descending triangle pattern.Īs mentioned previously, a triangle is a compression of prices while buyers and sellers wait on the sidelines for a breakout. Now, let’s go through each strategy in greater detail. ![]() Something to take note of, breakouts usually occur when prices are around 2/3 to 3/4 of the pattern length, and if prices go past the 3/4 mark, there is a possibility that prices may just continue to meander sideways without breaking out.
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