hey welcome to this video on triangle
trading pattern. When
people usually look at triangles they're
looking at big big big pattern says
doing this where they're looking at
lower highs and then higher lows and
this would be I would say a medium-sized
one but still pretty big emphasis kind
of thing they're looking for this will
be a symmetrical triangle and you've
ever k i don't personally like to treat
them very much i normally don't treat
them too much this way I'll show you
what I trade with triangles that works
very well for me but i like to trade are
basically what i call many triangles in
the trend within a trend so little
different than the big major triangles
let me show you what I'm talking about
so normally in most trends we see higher
high higher low look at the retrace then
higher high higher low higher high Ferlo
okay that's your typical trend no
triangles in here but i like to look for
our triangles in these little
retracement spots little retracement
there that's what i want to see a
triangle and here's what we've got so
the first thing is the overall trend is
down
we're in a fairly good down move and
that's the first thing that we're
looking for and we're going to create in
the direction of that trend so this
moving averages the 50 period simple
moving average by the way now then we're
going to look for in the retrace what do
we have
ok so we've got a little move up higher
low higher high complex retrace ABC
complex retrace right there's so as we
come back up
it's a a-b-c complex retrace very common
pattern and sometimes I'll take those
shorts and some other things but i
prefer even better than those are these
triangle retraces so get a little
triangle within the retrace so here you
go
there's your lower high and he is your
higher low and there's your triangle so
what this is doing for you the dynamic
of this you've got your higher low in
your lower high just you can see that
there's a symmetrical triangle and again
we're going to treat it in the direction
of the trans we're going to take a short
but the dynamic of what's happening here
in the energy of the market is that
again the overall dominant direction of
the market is down and we had a pretty
darn strong move here and that strong
move what happens when you get some
looks like this often is that the market
participants after they see something
like you know that after market is down
here Ben people are hesitant to take the
market short because they feel like well
they're late to the party now and you
know since they are so and also now they
be selling at a low price you want to
sell high and uncover low and so what
happens quite often in the skin is mass
psychology as to what causes these
patterns on the charts is that people
hesitate and they say you know it
already missed out on this big move or
people were in on the move and we're
taking their profits and so they're
actually getting out maybe they put in
stop behind this bar or something and so
on market memory traces back up a bit
and he had a lot of volatility coming
down
that's also important a lot of
volatility and the micros goes through a
cycle of being highly volatile and then
going to low volatility those of you who
are familiar with Bollinger Bands you
understand this contact with a pencil
expand and contract into a bowling team
and squeeze and that is a constant
fluctuation in volatility of market
that's a cycle another type of cycle in
the market volatility low volatility so
here we had a high-volatility time in
the market and then volatility comes out
well if you can catch it at the end of
that low volatility cycle
then you'll usually get a pretty good
impulse move out of that pattern in this
case it's a triangle pattern and that's
why I liked reading triangles is because
market will awesome explode out of them
and make some you know pretty decent
money in a short period of time so a
risk on this trade is from there to
there would be getting in here would be
placing our stop loss here what's our
reward release our potential reward that
the move gave us was all the way from
there to there so that's better than 21
better than three two one and that's how
you have to look at it up so much the
attendees over here so that is why this
happens is because we go from expansion
to contraction and triangles are
contraction patterns they show you when
the market is going to low volatility
and we like to get at the end of them so
that into that triangle pattern back in
the direction of the time for another
explosive move or at least explosive
innocence of a decent risk-reward ratio
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tutorials for you and one of the big
deals i want to give you today is where
they called a rubber band trade it is a
fantastic win-loss ratio trade is very
simple
I'll teach you to about 26 short minutes
on a special video which you can get
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