LTC / USD. An expanding triangle forms. + 70%. Entry Points
Updated
LTC / USD An expanding triangle forms. The third wave inside the triangle, as a rule it is the largest. Potential + 70%. Traders rarely trade inside triangles, especially in expanding ones. I trade these triangles internally and often, but only at the final stage of the formation of the triangle, how exactly here you can take the largest profit in the short term.
As a rule, the price in the final phase of the formation of the triangle is impulses, this makes it possible not to stay in position for a long time. Perhaps on lightcoin due to strong liquidity, the price movement will not be as rapid as in medium-liquid coins. I am leaving the position at 70-80% of the way the price moves from 100% of the target. This is especially true when the position is large and there is not enough liquidity for sales at the highest point.
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Here is an example of an algorithm for working in such formations shown in this learning-trading idea: TNT Coin operation. Impulse + diverging triangle + channel.
But it is worth noting that there is a difference that must be taken into account. On TNT, the horizontal channel, and on LTC, the downward channel at the moment. The positive point is that earlier on the coin there was a breakthrough of the downtrend line. Price is now back down to the downward channel.
In this example, the TNT coin shows the enormous profit that trading with this figure gives that most traders are afraid of. The moment of entry is important.
Training + trading idea: TNT Coin operation. Impulse + diverging triangle + channel.
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The entry points and Stop Loos I showed on the graph of the coin. I will not repeat myself as everything is clear. It is worth noting that these two downtrend lines (in red) are very important.
The lower downtrend acts as a support for the diverging triangle. She is very important for observation. On it is the turning point of the price. If its price is now breaking down and fixing below it, this will mean that the figure will not form. Then trade from trending in a downward channel.
The second downtrend line is the resistance of the downward channel (upper boundary of the channel). If the price breaks through it again and is finally consolidating, then this will most likely mean that the trend is finally reversing upward. This is how the complete formation of an expanding triangle will break through it and reverse the trend. The goals there are impressive for such a highly liquid coin. It is very important in such formations to observe the change in volume.
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Target from the first entry point + 70%.
Target from the second entry point + 45%.
The risk on Stop Loos is minimal, showed on the chart. It’s up to you to set how much you bet on your Stop Loos trading strategy. I try to always enter this way so that the risk is ZERO.
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Features to which you should pay attention when forming this model of a figure.
1) There must be a minimum of 4 points of contact 2 touches to the ascending line of resistance and 2 to the descending line of support. Then later touch points on both sides should tend toward the horizontal center of the triangle. And it is worth noting that the more points of contact, the more reliable the figure.
2) The volume of trading as the formation of the figure should increase. The “Expanding Triangle” figure, in contrast to other triangles, changes in the trading volume indicators on the contrary, that is, the volume increases with the formation of the expanding triangle.
3) If inside the “Expanding Triangle” (component of the triangle wave) the price increase is accompanied by an increase in volume indicators, then it is most likely that the figure will be broken up. And vice versa, if inside a symmetrical triangle a price drop is accompanied by an increase in volume indicators, then most likely the figure will be broken down. Do not forget to look in the tape of sales. The chart may show a "fake" that imposes a market maker. This is especially true for instruments with medium and low capitalization.
4) The ideal moment for a breakthrough is considered to be the moment starting from half to 3/4 of the figure. A break in the first half of the figure, as a rule, turns out to be premature, and in its last quarter, most likely, will be insignificant.
5) The "diverging triangle" triangle is a figure of the continuation of the trend. Most likely, the price will break through the support / resistance level and go in the direction of the trend. This is in most cases. The direction of the price movement depends on the side on which the price has left the figure. Therefore, the direction of the price movement into which the triangle made its way, rather than the previous trend, is more important.
6) the proximity of significant levels of support / resistance can also affect the direction of price movement.
7) If the upper resistance line has been broken, it becomes a support line. The broken bottom support line later becomes a resistance line. Sometimes after breaking through the price as a result of correction may temporarily return to this line.
8) The breakthrough of the figure should be convincing. It is desirable that a breakthrough in the direction of the dominant trend be accompanied by an increase in trading volume. When breaking against the trend, a sharp increase in trading volume is a prerequisite for confirmation.
9) An important breakthrough is not so important, namely, fixing the price outside of support / resistance.
10) The goal when working out the “Expanding Triangle” after the breakthrough is equal to the absolute value of the widest part of the triangle added to the price exit point. Similarly, the target is measured when trading inside the triangle and it does not matter in long or short.
11) This is the only triangle that allows you to trade very profitably inside the figure, because with each new wave inside the triangle everything is higher, therefore the profit potential is greater. If we assume that an “Expanding Triangle” is being formed, and that the formation of the figure has not yet been completed, then it makes sense to open a counter position from the support level or resistance level in the expectation that the price will reach the opposite side of the triangle.
As a rule, the price in the final phase of the formation of the triangle is impulses, this makes it possible not to stay in position for a long time. Perhaps on lightcoin due to strong liquidity, the price movement will not be as rapid as in medium-liquid coins. I am leaving the position at 70-80% of the way the price moves from 100% of the target. This is especially true when the position is large and there is not enough liquidity for sales at the highest point.
_______________________________________________
Here is an example of an algorithm for working in such formations shown in this learning-trading idea: TNT Coin operation. Impulse + diverging triangle + channel.
But it is worth noting that there is a difference that must be taken into account. On TNT, the horizontal channel, and on LTC, the downward channel at the moment. The positive point is that earlier on the coin there was a breakthrough of the downtrend line. Price is now back down to the downward channel.
In this example, the TNT coin shows the enormous profit that trading with this figure gives that most traders are afraid of. The moment of entry is important.
Training + trading idea: TNT Coin operation. Impulse + diverging triangle + channel.
_______________________________________________
The entry points and Stop Loos I showed on the graph of the coin. I will not repeat myself as everything is clear. It is worth noting that these two downtrend lines (in red) are very important.
The lower downtrend acts as a support for the diverging triangle. She is very important for observation. On it is the turning point of the price. If its price is now breaking down and fixing below it, this will mean that the figure will not form. Then trade from trending in a downward channel.
The second downtrend line is the resistance of the downward channel (upper boundary of the channel). If the price breaks through it again and is finally consolidating, then this will most likely mean that the trend is finally reversing upward. This is how the complete formation of an expanding triangle will break through it and reverse the trend. The goals there are impressive for such a highly liquid coin. It is very important in such formations to observe the change in volume.
_______________________________________
Target from the first entry point + 70%.
Target from the second entry point + 45%.
The risk on Stop Loos is minimal, showed on the chart. It’s up to you to set how much you bet on your Stop Loos trading strategy. I try to always enter this way so that the risk is ZERO.
________________________________________
Features to which you should pay attention when forming this model of a figure.
1) There must be a minimum of 4 points of contact 2 touches to the ascending line of resistance and 2 to the descending line of support. Then later touch points on both sides should tend toward the horizontal center of the triangle. And it is worth noting that the more points of contact, the more reliable the figure.
2) The volume of trading as the formation of the figure should increase. The “Expanding Triangle” figure, in contrast to other triangles, changes in the trading volume indicators on the contrary, that is, the volume increases with the formation of the expanding triangle.
3) If inside the “Expanding Triangle” (component of the triangle wave) the price increase is accompanied by an increase in volume indicators, then it is most likely that the figure will be broken up. And vice versa, if inside a symmetrical triangle a price drop is accompanied by an increase in volume indicators, then most likely the figure will be broken down. Do not forget to look in the tape of sales. The chart may show a "fake" that imposes a market maker. This is especially true for instruments with medium and low capitalization.
4) The ideal moment for a breakthrough is considered to be the moment starting from half to 3/4 of the figure. A break in the first half of the figure, as a rule, turns out to be premature, and in its last quarter, most likely, will be insignificant.
5) The "diverging triangle" triangle is a figure of the continuation of the trend. Most likely, the price will break through the support / resistance level and go in the direction of the trend. This is in most cases. The direction of the price movement depends on the side on which the price has left the figure. Therefore, the direction of the price movement into which the triangle made its way, rather than the previous trend, is more important.
6) the proximity of significant levels of support / resistance can also affect the direction of price movement.
7) If the upper resistance line has been broken, it becomes a support line. The broken bottom support line later becomes a resistance line. Sometimes after breaking through the price as a result of correction may temporarily return to this line.
8) The breakthrough of the figure should be convincing. It is desirable that a breakthrough in the direction of the dominant trend be accompanied by an increase in trading volume. When breaking against the trend, a sharp increase in trading volume is a prerequisite for confirmation.
9) An important breakthrough is not so important, namely, fixing the price outside of support / resistance.
10) The goal when working out the “Expanding Triangle” after the breakthrough is equal to the absolute value of the widest part of the triangle added to the price exit point. Similarly, the target is measured when trading inside the triangle and it does not matter in long or short.
11) This is the only triangle that allows you to trade very profitably inside the figure, because with each new wave inside the triangle everything is higher, therefore the profit potential is greater. If we assume that an “Expanding Triangle” is being formed, and that the formation of the figure has not yet been completed, then it makes sense to open a counter position from the support level or resistance level in the expectation that the price will reach the opposite side of the triangle.
Order cancelled
Note
Note
There is a breakthrough of the downward channel line + 54% from the breakout zone. From the second time I think the consolidation succeeded. It seems that the trend has changed, at least a downtrend may change to sideways movement.
Trade closed: target reached
First they took Stop Loss from the main crowd. Having dried the price to the specified level. Then the price was returned back to the formation of the expanding triangle. + 100% at the moment.
Note
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