- This topic has 0 replies, 1 voice, and was last updated 2 years, 8 months ago by Anonymous.
December 2, 2018 at 10:31 am #28511AnonymousInactive
Guidelines for trading by Ascending Triangles
Ascending triangles are wedge-shaped patterns that break out most often upward. The triangle can act as a reversal or continuation of the existing price trend.
Horizontal top line Price along the top follows a horizontal trend
Up-sloping bottom line Price makes a series of higher valleys, following a trendline. The two trendlines converge
Price crossing Price must cross the pattern from side to side, filling the triangle with movement. Avoid patterns with excessive white space in the center of the triangle
Breakout Can be in any direction, but is upward the majority of the time.
When searching for ascending triangles, make sure price crosses the chart pattern from side to side several times. Price should not be bunched up near the start nor near the end with an empty white hole in the middle
An ascending triangle forms because of increasing demand at lower prices matched with selling at a constant price.
The breakout from an ascending triangle is upward 64 percent of the time based on research completed in 2011 using over 1,600 ascending triangles in both bull and bear markets.
The apex of a triangle is where price tends to form a short-term peak or valley.
Compute the height of the formation at the start of the
triangle. Add the result to the price of the horizontal trend line
(upward breakout) or subtract it from the break price
(downward breakout). The result is the minimum price target.
For trading signals
Wait for confirmation Buy the pair when price closes beyond the trend line.
Sell on measure rule and best forex signals
For short-term traders sell trading signals generate when pair nears the target (see
measure rule). For intermediate- and long-term traders, hold
the pair until fundamentals or market conditions change.
Sell on downward breakout
If you own the stock and it breaks out downward, sell. If you
do not own it, sell it short. Should the stock pull back, that is
another opportunity to sell, sell short, or add to your short
BEST forex signals presents free forex trading signals live with Entry, Take Profit and Stop Levels. The best free forex signals send via email, website, SMS, WhatsApp from http://www.best-forexsignals.com
- You must be logged in to reply to this topic.