LOCO 1D TRIANGLE BREAKOUT LONG

3 thg 12, 2020

Triangle 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.
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).
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) Stop-Loss = 1.5 X ATR
1st Target = 1 X ATR
2) 1/2 off at 1st Target for profit
Move Stop-Loss to break-even
on remainder and let profit run
3) If, after entry, the candle closes
back inside the Triangle,
Close for a loss
4) No TP on 2nd trade – letting profit run and adjusting SL to follow price.