DislikedThanks BenStevo. Would appreciate seeing any trades that you make using the triangle. Please post them.Ignored
This is going back a ways but I haven't got around to posting any of these trades. Here's an after-the-fact one on G/U that I sold into yesterday.
I know it’s not exactly part of the 4hr MACD, but to me it’s still part of the market rhythm and so if it doesn’t come with a distinct MACD signal that’s not a problem. What I know is that it rarely fails (like my other favorite setup that Phillip introduced – the 3 sisters), and the setup repeats itself enough to include it in my trading strategy. Best of all it’s nice and easy to spot. If someone else can use it to their advantage then that is what it’s about.
Details are in the attached images. 1st image shows entry which is on the last candle shown on the chart. Wait for a break to one side of the triangle (especially nice if the false break opposes direction of recent trend) and then watch out for price to drop / rise and close back on the other side.
Stops are nice and simple – just put them 10 – 15 pips above the centre of consolidation area (this is a horizontal line that I just eye up – not necessarily in the centre of the triangle). I know it can feel like your stop is a bit exposed and hanging in the middle of nowhere, but the centre of consolidation is a hard area to break back up through.
My TP1 was near base of recent consolidation. TP 2 set based on what I saw happening on Daily charts as possible support.
Edit: I also like these setups because the SL is nice and tight but you usually get a good move following a break from price consolidation, so R:R is usually well over 1:1