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Triangle Trading -Qs

  • #1
  • First Post: Edited Aug 22, 2008 8:52am Sep 23, 2007 10:09am | Edited Aug 22, 2008 8:52am
I'm sure most of us know how to draw triangle using trendline. Also i always see most traders here in FF upload thier chart with triangle setup! But do you know how to project or find your target price once the price break the trendline?

Follow the rules below:

How to trade?

Now that you can identify triangle and know their behavior, how do you trade them?

STEP 1 (First Target)
http://www.sribena.com/pic2.jpg

  1. Draw horizontal line at the higher high or where the price hit the first higher resistance within the trend line/triangle.
  2. To avoid false break, Buy when price close beyond the trend line.
  3. First target at horizontal line.

Let's see what happen??

http://www.sribena.com/pic3.jpg


STEP 2 (Second Target)
http://www.sribena.com/pic4.jpg

  1. Measure the pips difference from A to B or Price at A minus Price at B. From my daily chart example above, the distance from A and B is 574 pips.
  2. Buy when price close beyond the trend line/triangle (same as step 1). When price open add 574pips. In my case, my second target will be at 1.5038

Let's see what happen again?

http://www.sribena.com/pic5.jpg

Second Target also HIT!! That's all.. don't be too greedy :


You can trade this method on any currency at any timeframe as long as you draw proper trend line or triangle. Do alot of practice before you trade it on live account.

Do you want third target? LOL...

Good luck & Happy Trading.

p/s: Your comments, views, suggestion on this method is appreciated.

*Charts in this post has been deleted.

"Invest With The Insiders, Not The Masses" George Muzea
  • #2
  • Sep 23, 2007 10:28am Sep 23, 2007 10:28am
Another example attached.
GBP/USD 30min chart.
Attached Image (click to enlarge)
Click to Enlarge Name: example1.gif Size: 23 KB
"Invest With The Insiders, Not The Masses" George Muzea
  • #3
  • Sep 23, 2007 10:35am Sep 23, 2007 10:35am
Another example GBP/JPY 1HR chart.
Attached Image (click to enlarge)
Click to Enlarge Name: example1.gif Size: 22 KB
"Invest With The Insiders, Not The Masses" George Muzea
  • #4
  • Sep 23, 2007 10:55am Sep 23, 2007 10:55am
Another thing i forgot to add...

This is very important!!!

If price break the resistance and the long term trend is bearish, don't expect the price will hit second target.

For example,
You have draw a triangle on 30min or 1hr chart and break the resistance (you buy), but on daily chart show bearish most of the time 60% price will not hit your second target.

But if the long term trend bullish and your triangle break the resistance (buy signal) i can guarantee first target, second target will be hit. Even if you have your third target
"Invest With The Insiders, Not The Masses" George Muzea
  • #5
  • Sep 23, 2007 10:58am Sep 23, 2007 10:58am
Hey Quicksilver,
very nicely explained. Thanks.
Regards,
Pluto2
  • #6
  • Sep 23, 2007 11:05am Sep 23, 2007 11:05am
Quicksilver,
do you use any other indicators to confirm the break out? Do you always use the daily for long term trend? For example; when trading 1H would you use the 4H for the main trend, or when trading the 4H, would you use the daily for the main trend?
Thank you for your reply.
Cheers
Pluto2
  • #7
  • Sep 23, 2007 11:16am Sep 23, 2007 11:16am
Quoting Pluto2
Quicksilver,
do you use any other indicators to confirm the break out? Do you always use the daily for long term trend? For example; when trading 1H would you use the 4H for the main trend, or when trading the 4H, would you use the daily for the main trend?
Thank you for your reply.
Cheers
Pluto2
Good question, I don't use any MA indicators but it's good if you have one.

If i trade on 30min/1hr chart, i will look it on daily trend either bullish or bearish by drawing trendline or channel.

But i think , by putting RSI or stoch to see the long term trend is fine.
"Invest With The Insiders, Not The Masses" George Muzea
  • #8
  • Sep 23, 2007 11:28am Sep 23, 2007 11:28am
Quoting Qu|cksilver
Good question, I don't use any MA indicators but it's good if you have one.

If i trade on 30min/1hr chart, i will look it on daily trend either bullish or bearish by drawing trendline or channel.

But i think , by putting RSI or stoch to see the long term trend is fine.
Thank you. How do you avoid false breaks? The triangle can be broken many times without continuation. Do you use stop losses?
  • #9
  • Sep 23, 2007 11:44am Sep 23, 2007 11:44am
Quoting aelimian
Thank you. How do you avoid false breaks? The triangle can be broken many times without continuation. Do you use stop losses?

Yes i always use stoploss. Put your stoploss at the nearest support. Sometimes you need to re-draw your triangle after the false breakout to get the prefect triangle setup. Find attached picture for example.
Attached Image
"Invest With The Insiders, Not The Masses" George Muzea
  • #10
  • Sep 23, 2007 11:45am Sep 23, 2007 11:45am
hi quicksilver, could u please tell me how to draw triangle trendline? sorry, I am new here. thanks
  • #11
  • Sep 23, 2007 11:52am Sep 23, 2007 11:52am
Quoting Jack2000
hi quicksilver, could u please tell me how to draw triangle trendline? sorry, I am new here. thanks
Learn it from here
"Invest With The Insiders, Not The Masses" George Muzea
  • #12
  • Sep 23, 2007 12:02pm Sep 23, 2007 12:02pm
Thank you.
Very Nice and simple method!
  • #13
  • Edited 12:46pm Sep 23, 2007 12:21pm | Edited 12:46pm
Example

Chart below shows the long term trend bearish but price break the resistance or the triangle and you buy when price open above the triangle. Most of the time your 2nd target will not hit.
Attached Image
"Invest With The Insiders, Not The Masses" George Muzea
  • #14
  • Sep 23, 2007 12:48pm Sep 23, 2007 12:48pm
Thanks QuickSuilver... A couple of years ago I have read about this somewhere and I completely forgot it.. Thanks refereshing my rusty knowledge.. No, I am saying this sincerely....
.
  • #15
  • Sep 23, 2007 12:52pm Sep 23, 2007 12:52pm
Quicksilver,
is this your main trading method? Can you give us some statistics? How long are you using this method, and are you trading it with money or paper?
What time frame do you prefer?
Thanks,
Pluto2
  • #16
  • Sep 23, 2007 12:56pm Sep 23, 2007 12:56pm
So the analysis for GU..
1st target: 2.0627
2nd targer: 2.1523 (LOL )
GO BIG OR GO HOME
Attached Image (click to enlarge)
Click to Enlarge Name: gu_targets.gif Size: 17 KB
.
  • #17
  • Sep 23, 2007 12:57pm Sep 23, 2007 12:57pm
Quoting Pluto2
Quicksilver,
is this your main trading method? Can you give us some statistics? How long are you using this method, and are you trading it with money or paper?
What time frame do you prefer?
Thanks,
Pluto2
I have 2-3 method for my trading depending on market conditions and chart pattern. I've been using this method for 2 yrs now.. and i trade live. Timeframe?? i trade it on any TF if i see good triangle setup except weekly and monthly TF
"Invest With The Insiders, Not The Masses" George Muzea
  • #18
  • Sep 23, 2007 12:59pm Sep 23, 2007 12:59pm
Quoting bullrock;<br /> [B
GO BIG OR GO HOME [/b]
"Invest With The Insiders, Not The Masses" George Muzea
  • #19
  • Sep 23, 2007 1:01pm Sep 23, 2007 1:01pm
Hi Quicksilver and thanks.
Just a quick question if you don't mind...
e.g., I see another triangle forming on your last chart whilst you are still in a trade. How would you, or would you, trade this if the previous triangle/trade is still running.
Cheers Dave
  • #20
  • Sep 23, 2007 1:08pm Sep 23, 2007 1:08pm
Quoting Acko
Hi Quicksilver and thanks.
Just a quick question if you don't mind...
e.g., I see another triangle forming on your last chart whilst you are still in a trade. How would you, or would you, trade this if the previous triangle/trade is still running.
Cheers Dave
Here is the big picture of the last chart. I must quit at first target because i know the long-term trend is bearish. It's very risky to run/hold the trade if you trade against the trend.
Attached Image (click to enlarge)
Click to Enlarge Name: example1.gif Size: 24 KB
"Invest With The Insiders, Not The Masses" George Muzea
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