1min triangle

Hi

Long time since I posted a new thread mainly because Im happy with the systems I have

however whilst waiting for 5min trades to kick in I started looking at the 1min time frame

very simple this.... throws out good signals a brief explanation....

Time frame - 1min
Swap -I use EU
Start at London open stop at London close

Pattern

We look for 3 patterns

1 - A period in time when the candles start making lower highs and higher lows,if you daw theis on a piece of paper you wish see this creates a traingle with the 2 points meeting to the right

2- A period in time when the candles start making lower highs and lows are even ,if you daw theis on a piece of paper you wish see this creates a traingle with the 2 points meeting to the right with the bottom flat

3 -A period in time when the candles start making higher lows and highs are even ,if you draw theis on a piece of paper you wish see this creates a traingle with the 2 points meeting to the right with the top flat

In all 3 instances price is being compressed with buyers and sellers fighting it out

We take a trade when the price closes above or below our drawn lines stop is 1 pip above or below the drawn line

I do not trade for pips at all in any of my trading but for % gain

Therefore I risk 5% on every trade and close when I have hit 10% gain,this gives me a risk reward of 2;1 on every trade regardless of pip size

To help us determine the actual high lo of candles we just use a standard zig zag

I have been taking 10% min out of the market every day with this
Friday I took 30% return on account

Draw backs

Have to be on the ball with your chart,as soon as you see lower highs for example we draw our line and wait to see if we get a level bottom or higher lows

I then get a market order ticket ready and just click buy or sell when I get a candle that closes above or below my triangle

Depending on your broker you may not be able to set a hard stop esp if its close to the fill price so I manually draw on my SL and TP and get my ticket up again ready to close



Please dont try and replicate my exact trades it wont happen..

I try and look for patterns that have more than 1 candle between any AB BC CD DE etc etc point..these seems to be far more explosive

With patterns that go on AB BC CD DE etc you can ignore the 1 candle rule as in 2nd trade 2nd chart

Also some times price can make lower highs and lower lows and still end up meeting at point X this is still a compression pattern and an example is on the 2nd chart

It shows a loser and then a winner with the above shown

Have fun with it

If I have a signal with a stop loss of 6 pips my TP will be 12 pips if I win I gain 10% on return of account

If I get a signal with 60 pips stop loss my TP is 120pips if I win I get 105 return on account

In both cases I have risk just 5%

Im getting around 75 % winners in my chosen window or trading


P

thanks for sharing this method Paulus

how you set your zigzag?
thanks

I use zigzagger set to 1

Cheers

P

do you trade before/after news with this method?
ty

just one question if you get 75% win rate ,out of tht how many percent of trades hit your TP target

hey, i think i can answer your question.. his tp is always 10%, his sl is always 5%.. so 75% of all his trades are winners and they are always 10%... balance: 1000,-; risk: 5%.. for example we had 100 trades.. 75 of them are winners (each winner = 10%) and 25 losers (each loser = 5%)

1000*1.1^75=1271895,-
1271895*0.95^25=352810,- this would be our new balance after 100 trades..

cheers

a/c balance $1000
Risk 5% per trade = $50
out of 100 trades 75 winners 25 losser
take profit 10% (sl x 2 ) against SL 5% so take profit r:r 2:1
75 wins = $50 x 2 x 75 = $7500
25 loss = $50 x 1 x 25 = $1250
( 7500 - 1250 )
balance profit = $ 6250
final balance = $ 7250
is this right lol at this rate he must be very good at spoting the trades

you take for every trade 50$, but after a winner or loser the 5% or 10% aren´t 50%.. for example balance 1000,-.. first trade ist a winner (10%) so our balance is 1100.. for the next trade you have a risk of 5% of the 1100 and not of the 1000...

EDIT: you have to adapt your risk to your current balance, not to the old...

yes I understand what you mean now ,im my calculations I was not compounding the profits to carry over next trade , as I only compund my profits every 3 months thts how I trade , your 100% right there thnx

this is my another account where I use compounding method every month

lol it does not always work out this way but very close to it

if more profit is made then my target then its reserved for further future losses and are not added when compunding

I do like the look of this 1 min triangle so will test it out

Paulus,

Am I applying this correctly? I got in on the close of the candle with the vertical dotted line. You can disregard the blue boxes, they just help me determine where the tp level should be.

Do you move the lines after adding them? I had to move the lower trend line a couple of times since price would really close past it. Only the wick would pierce the area so I would move the line down a bit.

Greetings Paulus,

This method looks good. May I inquire as to why you include "Swap"? If you are trading on the one minute you are most likely not going to hold the trade until Swap kicks in.

Do you mean "trading pair" instead of "Swap" by chance? Swap is the interest collected or paid for holding trades overnight.

Sorry yes trading pair ..my bad termonolgy

I also have another good 1min system I use during the day which is more mechanical..I do very well with it and will post today if I get time

cheers

P

Your stop loss is at the best possible place last major swing low

the good thing about trading % not pips is it doesn't matter how far your stop is you only risk 5% of your account or 1 % 2% ect what ever you prefer

I never move lines are initial placement
P

this is a good system. my 2nd post on FF. after all patterns are said to be good as stated on babypips. they can be applied to m1 timeframe. i prefer scalping as to wait for setup on higher timeframe, those may only come 1 or 2 /week and u can miss em also. atleast lower timeframe we have more chance for some green pips.

occasionally there will be a false break. thats where money management will keep us from loser and good risk reward.

there were already some good triangle trades on 1m asia session, but early on.

This old thread deserved a bump. I've been trading this method every morning for a few weeks while drinking my coffee before leaving for work. That's from about 0630-0730 Eastern US time.

It seems like a good triangle forms most mornings right around that time.

This strategy is very similar to the Tom Demark's SD Lines Breakout Strategy.

I'd turn it around and say Demark's TD Lines are similar to this strategy. Even though OP used a zigzag indicator, it really wasn't necessary. He was just drawing trendlines and waiting for triangles to form. It's so simple it doesn't need a special name; it's just TA 101.