The Triangle pattern. One of the most popular trading patterns ever
used in the trading community. Like no, really, our great stock ancestors
have been using these in technical analysis forever.
(spongebob rock) And there s definitely a reason for that.
One, it s a very easy pattern to spot. Just two simple trendlines that come to an apex.
Ahhh beautiful. So im sure you ve used one before, but this
video isn t about what a triangle pattern is, it s about my secret tips I use myself
to absolutely take advantage of this one simple pattern.
I m going to sharing different ways you can optimize this pattern and insanely benefit
from it. If you use these tips yourself, this just
might happen to you. (FBI open up)
All jokes aside, if you use the triangle pattern. This video will help you out. A lot.
Let s get straight to it. So to start us off, The triangle pattern can
come in 3 different forms. The symmetrical triangle, where its symmetrical
in shape, and not really trending in one direction. Then there is the ascending triangle, where
price actions will slowly start moving in the upward direction.
Then of course you have the descending triangle, where price action will slowly start moving
in the downward direction. So my very first tip involves the apex point.
Which is where the two trending meet up. In most cases, you never want to enter a trade
if the price actions goes beyond the apex. The whole reason why the triangle pattern
is so good is because of the trading momentum that happens inside of it.
(its momentum baby gif) So what I mean by that is, for a asending
triangle for instance, buying pressure keeps getting stronger and stronger over time. Making
the buyers have more and more control as price moves up.
Same thing with the descending triangles. Here selling pressure is getting stronger
and stronger as time goes on. All of this tension is building up, so once
price does break this trendline, its moves insanely fast and has a lot of momentum behind
it when it breaks out. If price never breaks the trendline, and then
just moves sideways into the apex point. All of that tension is now lost, and it ll be
extremely hard to predict price movement afterwards, as the chart will start moving sideways.
My next tip is an absolute game changer. And if you use the triangle pattern this will
completely open your eyes. But first, check this out.
I found this private indicator called Chart prime.
What it does is automatically draws the chart patterns for you.
It can do channels, pennants, wedges, everything. You just download the indicator.
Add it to your chart and select whatever preset size you want the pattern to be. The larger
the preset, the more the indicator will go back in time and the larger the actual pattern
will be. You can also manually change the sensitivity
or deletion period of candles if you want to be a little more exact with your patterns
and not use a preset. Once you play around and find a preset you
like, the indicator will automatically draw all the patterns for you whenever one is created
on your chart. Once you see the lines drawn on your chart,
the indicator will actually automatically notify you with an X to let you know that
price is breaking the pattern. This indicator is great and I d absolutely
recommend it to anyone who uses patterns when trading.
If you re interested in the indicator. Ill leave a link in my description.
Back to the tips. Now this next tip is a game changer.
You can actually use the size of your triangle pattern to predict where to set your take
profit. A lot of the time, a triangle pattern will go up or down the amount based off its
size, when it breaks out. So say if your asending triangle pattern is
100 pips. You can set your take profit 100 pips from the breakout.
A lot of the time, when price does breakout, it will hit this take profit with ease.
Same thing goes with descending triangles. Just measure the size of the triangle. Place
that measurement where price breaks downwards. That s where you place your take profit if
you wanted to short. Here s a real example. So you can see a triangle
was forming here. Price actions is slowly starting to accumulate more and more momentum.
Once that momentum builds up so much, it breaks the pattern.
So, we grab the rectangle tool. Measure from the low to the high of the pattern. Then place
this at the breakout point. Now we have our take profit level, and look what happens,
price hits it with ease.
Here s a short example. Price is building up downwards momentum. Breaks the trend. We
measure the pattern size. Plot our take profit point. And looks what happens. Price gets
there. Its really that easy. Don t be surprised if price goes a little
past your take profit point, as it will happens sometimes, but as I always tell my premium
members in my Discord. Don t get greedy. It should also be said. Triangle patterns
on higher timeframes like the daily or weekly will be way more predictable and will have
a higher win rate. As it takes a lot more volume create these, so they will be a lot
more reliable. Also, the profits will be a lot bigger. As
the triangles will be bigger. So it really is a win win situation.
Id definitely suggest finding patterns on the higher timeframes and using this take
profit tip. They will work on lower timeframes aswell,
but like I said, they perform a lot better on the higher ones.
One of the BIGGEST problems with trading patterns is false breakouts. Next, Ill be going over
some of my secret techniques I use to help avoid false breakouts.
To find that out, watch this video. Thanks for watching, and ill see you guys,
next time.