Triangle Trading Journal

I have been trading Forex for some time, but the one thing i always seem to come back to when i hit an area of failure is trendlines and patterns, and i always feel comfortable with trendlines and patterns, probably because it was one of the first strategies i ever traded. I have traded patterns many a time in the past, especially wedges which seem quite common and channels as well, but for me none of those patterns ever seemed profitable enough for myself, and whether i was doing something wrong i do not know, but one pattern i have found a certain sense of joy in trading is triangles. Symmetrical and Ascending/Descending triangles are a good pattern i like to trade, and this thread will be my journal for trading these patterns. I'm using the H1 chart and will post ALL my trades for all triangle patterns i trade. Feel free to chip in if you want to comment as constructive criticism is best.

The first trade today is a Symmetrical triangle on AUDCHF on H1. On my trades i'm always going to try and get a risk reward of at least 2:1, but the target and stop for this trade are at around even. Target for this trade is at the blue line 0.84731


RULES OF MY CURRENT SYSTEM:-
1) Wait for a triangle pattern to form
2) Watch for a breakout to the correct side (ie Bearish break for ascending triangle)
3) Wait for retracement back to the trendline
4) Wait to see bearish divergence if you're selling short on the retracement/pullback

I get my targets by measuring the highest point to the lowest point of the pattern. I always trade with a risk reward of at least 1:2. Usually when trading on the 15 minute charts this is risking 10 pips to make 20 pips.

Here is another trade i'm keeping an eye on for later. USDCAD H1 Descending triangle. This potential trade boosts a good risk/reward.

Entered short on my USDCAD earlier, seems to be shaping up well with a good bearish move. Target is about 60 pips with a stop of 20 pips give or take.


My original AUDCHF trade is beginning to frustrate me a little. Was looking good until this latest bearish bar formed, and price seems to have been ranging for the last 15-18 hours or so, hopefully see a move to the upside sometime today though.

Closed my initial AUDCHF H1 trade at break-even, mainly because the trade was taking so long to materialize, and with the pattern not being as perfect as i liked in the first place, probably best to get out whilst i can.

Gone long on AUDCAD H1 with a 35 pip target.

Really big trade shaping up on EURJPY H1. Will go long if it breaks to the upside.

Gone long on EURJPY now that it has closed above the resistance.

EURJPY hit my stop. -30 pips

After some consideration on the weekend i have decided to day-trade the 15 minute charts of the major currencies, rather than the hourlys of lower liquidity pairs such as AUDCHF, AUDCAD etc; I have found over time that trading on the smaller time-frames is better for me, it gives me a chance to get in and out of trades quicker, and be less frustrated with sideways markets for 24 hours+.

From today i will be trading just the majors on the 15 minute chart. And the first trade i have is AUDUSD going short. Another thing i also notice about trading pairs with lower spreads, is that in general risk/reward is much easier to calculate when taking into considering the spread etc;



My next trade is EURUSD short as well. Both trades have a 10 pip stop loss and a 20 pip target.



Both of these trades have bearish divergence indicating a reversal on the pull back-, so hopefully both will come off.

Decent day so far with 1 win and 1 loss. The original trade which closed on AUDUSD, has now broken another triangle to the upside. Currently waiting for a pull back and hopefully some divergence, and then i'll enter.

AUDUSD long on the pullback with hidden divergence.

Starting the day at around breakeven after two losses and just the one win yesterday. Looking to go long on this triangle, providing there is a pullback.