Consolidation and Triangle Breakouts

Hello fellow traders....I wanted to post this thread because I have had a few people ask me if I had any other breakout strategies that I use. This strategy is nothing new and most traders already know how to trade this. This is the intent to help the newbie traders out there where this can help you make a few extra trades per week. These 2 different strategies work well for 2 reasons. 1) It has small stops and 2) It is extremely easy to do and has a very high win ratio. I will place 2 separate post here for each the consolidation and the triangle.

The Consolidation Breakout strategy is very easy to use. It works on any timeframe and any currency you choose. Keep in mind the higher the TF the higher your SL. I use most of mine on the 15m and 1H.

What you are looking for here is a consolidation period where it had a previous move up or down. You don't want to see a choppy sideways movement then come to a tight consolidation. You want to see a move up then a tight consolidation or a move down a then go into a tight consolidation.

We are only going to be placing our entry in the direction of the previous move. For example, if we had a move up then goes into a tight consolidation, we will only be looking for a long position.

Most of the time price will continue in the direction of the previous direction. Will you miss trades....Yes but what this strategy is used for is to capture the highest percent of a winning trade as possible.

SL is 5 pips below the low/high of the consolidation.
TP is 1.5 times the risk.

If you have a 20 pips SL then you would have a 30 pips TP....etc.

Hi ufgators,

Thanks for posting your thoughts. It seems to me that you are showing nothing new (really). Consolidation, flags, triangles, trend lines, breakout trading etc are things any good chartist should know thoroughly.

I feel it would have been better if you opened a journal and did a running commentary of your trades (showing how you took your trades from various consolidation patterns).

Am really not trying to put you off but just thought i should share with you what i thought when i read your postings.

Happy trading.

Z

Yes agree that most people should know how to trade this but this thread was intended for the newbie traders. Those who are just starting out and need something easy to do while learning to trade the market. As I stated in the first post that I had people requesting an easy breakout strategy and most traders especially newbie traders know to trade the breakout but don't know the higher percent of trading in the direction of the previous movement alone. I also stated in the first post this was intended for new traders.

UFGATORS,than you for sharing your strategy.

CAN YOU SHARE THE TRIANGLE BREAK OUT STRATEGY, PLEASE



THANKS

Yes I will try to have them posted by morning.