Best Triangle Patterns That WORK!! (MUST KNOW) - Forex Day Trading - YouTube

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{\*\generator Riched20 10.0.18362}\viewkind4\uc1 \pard\sa200\sl276\slmult1\f0\fs22\lang9 If

you want to make good money, Triangle patterns will help you do that very quickly. Triangle

Chart patterns are one of the most useful chart patterns for day traders. Every intraday

trader should be aware of these patterns, not only to make more money, But also to avoid

taking trades in the wrong directions. \par The following patterns are loved by day traders,

because a triangle patterns shows decrease in volatility, and it helps to predict a better

price direction. They also provide good trading opportunities, with good profit and loss ratio.

If you are a day trader, you should be aware of these Triangle Chart patterns to make money

in your trading career.\par \par

\par In this video, we are going to understand

three main triangle chart patterns, and then, we will see a profitable strategy based around

them. Before we start, make sure to Subscribe to this channel to see more free trading videos

that will help you make money.\par \par

Number 1. The Ascending Triangle.\par It is a triangle chart pattern that has relatively

similar swing highs, but the swing low is rising towards the high. If you draw a trend

line along the swing highs, the trend line will look like a horizontal line. But if you

draw a trend line along the swing lows, the line will look like an uptrend. It will look

like an ascending triangle. Swing high on this chart pattern will act as a strong resistance.

\par \par

Number 2. The descending Triangle.\par It is a triangle chart pattern that has relatively

similar swing lows, but the swing high is falling towards the low. If you draw a trend

line along the swing lows, the trend line will look like a horizontal line. But if you

draw a trend line along the swing high, the line will look like a downtrend. It will look

like a Descending triangle. Swing low on this chart pattern will act as a strong support.

\par \par

Number 3. The Symmetrical Triangle.\par It occurs when the price cannot make new higher

highs, but is also struggling to make new lower lows. The result of this looks like

a triangle, where price is brought to a narrow range. If you connect the swing highs using

a trend line, you will see a downtrend. But if you connect the swing lows with a trend

line, you will see an uptrend. Both trend lines intersect each other. Usually, price

tends to gain a lot of momentum once it breaks through the pattern.\par

\par Now that we understand the three triangle

patterns, lets see how to make money using this information.\par

\par The strategy of break-out can be used in every

kind of triangle. The result is the same, irrespective of whether the triangle is, ascending,

descending, or symmetrical. \par \par

When an asset price goes beyond the upper trend line of a triangle, Or when the price

of an asset drops below the lower trend line of the triangle, The break-out strategy must

be applied. \par \par

Since each trader will draw the trend lines very differently, the exact point of entry

can vary between traders. To make sure you enter the trade at the right price, you can

use volume changes that will illustrate when the price starts gaining momentum.\par

\par \par

But if you are an experience trader, and want to get a bigger reward relative to your risk,

you can use the Anticipation Strategy. Since we know that the price will breakout from

the triangle, we can anticipate the breakout direction few minutes before the breakout.

This will get us a better price, and will increase our potential profit.\par

But the skill to anticipate a breakout, you need to have a decent bit of experience in

trading. So, if you are a beginner, you should wait for the breakout, and then and only then,

you should enter a trade.\par \par

\par Once you have entered a trade, always use

a stop loss. Even if the price moves to your advantage, it can always be reversed. The

risk is controlled by a stop loss. You can always get out of a bad trade using a stop

loss order, instead of losing a lot of money on it. There is always a better trade waiting

for you.\par With a stop loss, you can set a maximum amount

you are willing to risk on a trade. You should never risk more than 1 to 2 percent of your

total capital, on a single trade. Money management is the key to success in trading.\par

\par There are couple of ways to set a stop loss

for these triangle chart patterns strategies. Once the breakout has occurred, you can set

the stop loss below the candle that broke out. Another way is to set the stop loss,

out of the triangle. This is more secure, but also reduces the risk to reward ratio.

You should back test this strategy and use the stop loss that suits you.\par

\par \par

Trading is a probability game. Every trader should understand that they are not going

to win every single time. You can make a great living with a trading strategy that has a

win-rate of just 60 percent. There is one thing you should look out for when trading

the breakouts on these triangle patterns. I'm talking about The False Breakouts. \par

You can be a profitable trader with the triangle patterns, but as any other strategy out there,

this strategy does not work 100 percent of the time. Sometimes, you will get a false

breakout. False breakout, is the term, used when the price does not continue to move in

the direction of the breakout. It falls back into the range.\par

\par \par

False breakouts are part of the trade, and can contribute to trade failure. Do not be

discouraged. Not all outcomes of the breakout are false, and false outcomes can actually

help traders take trades on the basis of the anticipation strategy. In other words, it

can help you anticipate a trade. \par \par

But false breakout won't matter, because in this strategy, the market makes a big move

when a successful breakout occurs. Therefore, you can expect a profit of 2 to 3 times the

risk. So, even if your win rate is just 50 percent, you can still make money by setting

double profit targets on a good breakout.\par \par

\par It is a strong ability to know how to perceive

and trade triangle when such pattern arise. They are common, but they will not happen

in all stocks every single day. Day traders typically need a large variety of strategies

rather than just trade these triangles. The concepts discussed here may also be used to

trade other diagram patterns.\par \par

Before you try to trade these patterns with real money, practice spotting, drawing and

trading triangles in a demo account. Traders can then verify whether they are able to profit

from the strategies before any real capital is jeopardized.\par

\par \par

The patterns we discussed, can be used by both, day traders and swing traders. But day

traders should handle their stop loss properly, because price can make a sudden move in the

opposite direction. You can also trail the stop loss candle by candle if you wish, or

use any other method to trail the stop loss order. \par

But always take profit, more than what you risk on the trade. It will help you make money

even if your win rate is bad.\par When trading the Triangle patterns, you should

also look for other strong support and resistance that are nearby. If the support or resistance

levels are in your favor, happily take the trade, otherwise, just hold back and save

your money.\par \par

The best way to find a strong support or resistance, is by looking at the higher time frame. I

will make a video on how to draw strong support and resistance using multiple time frame soon.\par

Subscribe to the channel to see it. Smash that Like button if you found this helpful.

and Thanks for watching.\par }