Triangle
MTAR Idea for short term and long term baesd on chart pattern. Take trade at your risk. Donot invest more than 5% of capital in any trade
What is Ascending Triangle?What is an Ascending Triangle Pattern?
Ascending Triangle Pattern is a continuation pattern that means when it plays out it will continue the preceding trend. It is created by price moves that allow for an upper horizontal line to be drawn along the swing highs, and a lower rising trendline to be drawn along the swing lows. These two lines form an ascending triangle . Traders here usually watch for breakouts from upper resistance in ascending triangle patterns.
How does the Ascending Triangle Pattern work?
After the prior uptrend when investors try to book profits it creates a resistance that leads to a high supply zone . But due to the prior uptrend investors are still interested in the asset which leads to picking up in demand slowly, resulting in a rising trendline. Time in this phase is also a crucial element. The longer this pattern consolidates, the more chances it has to give a possible breakout to continue the uptrend.
Why is the Ascending Triangle Pattern Unique?
Ascending triangle patterns usually have a higher breakout success rate than symmetrical triangle patterns. In an ascending triangle , higher lows are constantly being built, which shows there is a strong demand for the asset.
Role of Volume:
Volume plays a major role in the completion of all major patterns. The horizontal trendline which acts as resistance can give spikes in volume . We will call it a breakout when a candle closes above horizontal resistance level with a great volume spike or rise in average volume .
Above Chart Explanation:
This is the 4H chart of FTTUSDT with a clear preceding upward trend. After the uptrend, we enter the second phase where the upper horizontal line becomes resistance 4 times in a row and the lower rising trendline becomes support 3 times in a row. As we have observed here FTTUSDT consolidated for nearly 1 month in an ascending triangle pattern, which finally led to a super bullish breakout.
Two Possible Entries:
Entry 1: On rising support, when the price touches the rising support trendline and if there is rising average volume , it makes a good entry with a stop loss placed below the previous higher low point.
Entry 2: On resistance breakout, we should wait for the 4H candle to close above the resistance to confirm the breakout’s validity. Once the breakout is valid, a potential opportunity would be to enter at the close of the 4H candle with a stop loss placed a little below the breakout level. Usually, we should target the height of the triangle after the breakout.
Comment down your thoughts on Ascending Triangle Pattern in the comment section.
Disclaimer:
This is just an educational post. Never trade just any pattern. And please do your research before making any trades.
Happy Trading!
PS we are posting this again for our Indian Audience.
A SYMMETRICAL TRIANGLE TRAP VARIATIONTriangles are one of the best continuation patterns. They are normally seen in the middle of a trend as the price halts and rebuild energy to resume in the direction of prevailing trend.
In this particular variation shown on the chart, the price breaks against the trend. It would look like as if the pattern is about to fail but the breakdown ends up in a trap. It traps most short sellers on the wrong side of the market at 6. The price then shoots up with strong momentum leaving no choice for the short sellers than to cover their positions. So instead of only breakout buyers at 7, the variation will also trigger buy orders of trapped short traders. Due to large number of buy orders at 7 the price shoots up pretty fast without any major pullbacks.
Its always good to keep such a strong weapons in your quiver and strike whenever the opportunity knocks.
It needs to be pointed here that the pattern will lose its worth as the price drifts closer to the Apex. As a rule of thumb, If the price is beyond 3/4th the length of the triangle, as shown on the chart, the pattern should be traded with caution. If the price has drifted up to the Apex, then ignore the pattern and move on to a next one.
The target for the triangle should be the height of the triangle from 1 to 2. This length measured above 7 will give us the target.
Ex. If the distance between 1 to 2 is 50 points and the breakout 7 happens at say 550, then target will be 550+50 = 600 (just an example). This is a conservative approach. Some trades would like to hold it and trail their stop loss until they get stopped out. It all depends upon one's trading style.
I hope the post would catch your interest.
Do like and comment for more educational ideas in future.
Regards
JJSingh
Keep eye for a positive breakoutLooking near a positive breakout range. so wait for breakout & retesting.
Btst GranulesAwesome Triangle breakout caught in GranulesIndia today and also took as btst. Orginal trade was Buy at 335.6 and hold till 361+ with an sl of 330.5
Symmetrical Triangle Pattern With Full Tutorial
1. This is basically a Symmetrical Triangle Pattern. Where Resistance & Support Line tends to cross near future, which is also known as APEX point. Breakout can happen both the side e.g. ups and down. In this chart is it in upside breakout.
2. We've to measure the distance of price range. Which is between Resistance & Support Line, when pattern was developed and now that range paste on the breakout side for measure Profit Target.
3. That price range has been paste in this area now 721.60 is the initial profit target for this Symmetrical Triangle Pattern.
Symmetrical Triangle Pattern Trading Strategy NSE:BERGEPAINT
When market break on upside or break the resistance line of this pattern, market was totally on bullish nature and we have to catch that bull run.
What is a Symmetrical Triangle Pattern?The Symmetrical Triangle is usually a continuation pattern. It represents a pause in the existing uptrend after which the original uptrend gets resumes. A breakout from the upper trend line marks the continuation of an uptrend while a breakdown from the lower trend line marks the start of a new bearish trend . This pattern is also known as a wedge chart pattern.
How does Symmetrical Triangle Pattern Work?
Phase 1 : Existing Uptrend
When there is an extreme demand in prices there is an uptrend. It continued as the demand increases.
Phase 2 : Pause
When demand is equal to supply the there is a pause in an uptrend and investors start to book profits here. As prices consolidate it forms converging trend lines . As there is equal demand and supply investors buy on the lower trend line and sell on the upper trend line . Which results in forming a Symmetrical Triangle Pattern .
Phase 3 : Uptrend Continuation
After demand matching the supplies when there is when buyers are again interested to buy demand increases. Which results in breakout! And the continuation of the uptrend.
Role of Volume:
Volume plays a major role in a symmetrical triangle pattern . When in an uptrend the volume is quite higher. In the second phase, the volume starts to diminish due to equal demand and supply. And again on the breakout, the volume surges. Volume with Breakout gives a good indication of a successful uptrend.
Above Chart Explanation:
This is a 4H chart of AXSUSDT we can see it's in an uptrend previously with good volumes. Now after successful uptrend prices consolidate with diminishing volumes. And after it, there is a breakout with above-average volumes. And then the uptrend continues.
Conclusion:
Symmetrical Triangle Pattern is a continuation pattern. Which on upper trend line breakout can give a potential bull move and when on lower trend line breakout gives a possible bear move.
Comment your thoughts on Symmetrical Triangle Pattern down below.
Disclaimer:
This is just an educational post never trade just any pattern. And please do your research before making any trades.
PS: We are again publishing this for our Indian audience.
Happy Trading!
Banknifty spot 60MinsJust for educational purpose!!! All about symmetrical triangle, upward channels and trendlines!!!
My swing picks1 , multi year trend line brek out
2 , triangle pattern break out
Entry above 105
Sl 92
Target 125 and 135
The best trades work almost right away.A breakout trade will work almost right away from the start, if the breakout happens with huge momentum and then you see Doji candles or hammer then there is a problem with follow-up. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish breakout needs good bullish candles, not Doji.
Note-As soon as you enter a breakout trade it has to work within 15-20 days.
If it does not move with huge momentum then exit it after 15-20days with whatever the result may be, don't wait for the stop loss to hit or for your target. The above rules apply only to Swing trade and breakout trading.
BANKNIFTY WEEKLY ANALYSIS (17/7/21)- Price is converging between lower trendline and upper trendline, will need to give breakout (follow the major trend)
- Price must trade above 35800 and sustain to make upper move to ATH which is 5.38% away)
- Outperformed nifty this week, follow up price action is needed (upside) as price closed exactly at upper trendline shadow
- Anticipating breakout in 1-3 weeks time period (although market is supreme)
- HDFC bank results on Monday, can help decide the direction of BNF.
Ascending Triangle BreakoutOBEROIRLTY: Swing trade
Ascending Triangle Breakout
In Ascending triangle pattern the upper trendline is flat, while the lower line is rising.
This pattern indicates that buyers are more aggressive than sellers. It is considered a bullish pattern and is usually resolved with a breakout to the upside. The pattern is completed on a decisive close above the upper line.
This breakout should see a sharp increase in volume .
The upper resistance line should act as support on subsequent dips after the breakout.
Ascending Triangle Measuring Technique
For the ascending triangle, traders can measure the distance from the start of the pattern, at the lowest point of the rising trendline to the flat support line. That same distance can be transposed, later on starting from the breakout point and ending at the potential take profit level.
The illustration above shows the distance from A to B can be transferred higher up, from C to D, in order to project a possible take profit level.
How to trade Ascending Triangle Pattern
After viewing a strong break above resistance, traders can enter a long position, setting a stop at the recent swing low and take profit target in line with the measuring technique.
Note- False breakouts are possible (traders need to manage risk accordingly )
My advice is to risk only 2% of your trading capital. Buy 30% of your position at CMP & if price respect levels of 676 then execute your 70% position.
The whole idea is to lose less money when you are wrong and to win more money when you are right.
Symmetrical Triangle in NTPC.A symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs. These trend lines should be converging at a roughly equal slope.
1. Symmetrical triangles occur when a security's price is consolidating in a way that generates two converging trend lines with similar slopes.
2. The breakout or breakdown targets for a symmetrical triangle is equal to the distance between the initial high and low applied to the breakout or breakdown point.
3. Many traders use symmetrical triangles in conjunction with other forms of technical analysis that act as a confirmation.
The price target for a breakout or breakdown from a symmetrical triangle is equal to the distance from the high and low of the earliest part of the pattern applied to the breakout price point. The stop-loss for the symmetrical triangle pattern is often just below the breakout point.
ASTRON | WEEKLY ANALYSIS | 40%-100% UPSIDE POTENTIALCLOSELY WATCH THE LEVELS
VOLUMES HAVE STARTED TO POP IN
23/6/21
- Smallcap, Material (paper)--posted negative results FY21---quarterly results mar21 is positive
-W- Stock has bottomed out and started making positive price structure
- Above all major EMA on D, in W, crossing 100EMA with good VOL
- Parameters positive on D & W
- Volume have started to increase
- Breakout and close above 60-62 on closing basis with good volume will validate
- Can initiate buy at lower trendline if makes bullish candle
- 100EMA and Resistance confluence
📚Trading Lesson. Triangle Types & How to Read Them📚
Triangle is a classic price action pattern that is applied by technical analysts to make predictions trading different financial markets.
Depending on the shape of the triangle, there are three main variations of this pattern.
Its meaning changes dramatically from one to another so it is crucially important for you to know the difference.
👉 The symmetrical triangle is determined by two contracting trend lines.
The pattern is considered to be indecisive meaning that while the market is stuck within, the directional bias is unknown.
Only the breakout of a boundary of a triangle clarifies the future direction.
👉 In contrast, the ascending triangle (also called a bullish accumulation) is a classic example of a bullish biased pattern.
With a horizontal trend line serving as resistance and a rising trend line service as support, the market is accumulating volumes for a bullish breakout.
Once the horizontal resistance is broken, bullish continuation follows.
👉 The descending triangle is a bearish biased pattern. Also called a bearish accumulation, the pattern indicates the preparation of the market participants to set a new low after consolidation and contraction within a triangle.
Once the horizontal support is broken, bearish continuation follows.
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Symmetrical triangle (coils) (continuation pattern)
Prints when the market is indecisive. Price market higher lows & lower highs. It is the situation where supply and demand are near to equal. The trading range becomes smaller and smaller within the triangle. It represents a pause in the exhausting trend after which the original trend is resumed.
1) The minimum requirement for a triangle is four reversal points. Many have 6 point requirements but at least four points.
2) In a symmetrical triangle, we get apex where two converged trend line meets. Apex also works as a very important support & resistance. Sometimes a return move will occur back to the penetrated trend line after the breakout occurs.
3) Duration: A minimum duration of 3 weeks and it rarely exceeds 3 or 4 months long. (less than 3 weeks of duration likely to be a pennant formation, not a symmetrical triangle)
4) Volume: Narrow volume within the triangle. Very low before the breakout.
5) Breakout: Price closing below the lower rising trend line confirms the breakout or Price closing above the upper falling trend line confirms the breakout. The direction of the break in the pattern can only be confirmed after the break has happened. Either Up or Down.
6) Buy: Buy the Stock a day after Price closing above the upper falling Trend line.
Sell: Sell or short the stock day after Prices closing below the lower rising Trend line.
7)Target: – The technical price target is to measure the widest distance of the symmetrical triangle, Add the distance to the upper trend line breakout price for a buy target or Subtract the distance from a lower trend line breakout price for obtaining a covering price.
8) SL: usually, price closing above falling upper trend line is a Sell stop loss or price closing below rising bottom trend line is a buying stop loss. But very often, the gap between breakout price and trend lines is very wide.
Or
Stop: "Symmetric triangle" failures occur when price results in false breakouts. Stop below the first major "swing low" below the trend line for a long setup. Place a "stop" order above the first major swing high from the trend line for a short-setup.
9) Alert: To receive a valid signal, a closing price has to be above the resistance line or below the support line. The more the price moves to the very end of a triangle, the weaker will be the breakout in either direction.
10) Symmetrical triangle has two merging trend lines. For this formation, at least two peaks and two valleys are necessary. To reduce false breakouts, investors should wait until there are either three peaks and two valleys or three valleys and two peaks. With this approach, however, it is possible to completely miss a trend,
How to avoid fake outs?
1. 200 EMA confirmation
2. Use trail SL
Hindlaco NSE:HINDALCO
Hindalco can make a new 52 weeks high in coming days. Looking good for short term.
Nazara Tech - Beautiful Symmetrical Triangle SYMMETRICAL TRIANGLE
Clearest Symmetrical Triangle formation you will ever see.
Multiple rebounds from bottom and top trend lines. Trading within the pattern.
Symmetrical Triangle is a Bilateral Pattern, i.e. can go either way.
Therefore, Technical Analysis needs to be supplemented by Fundamentals to assess more likely outcome.
[Swing] Ascending Triangle breakoutSpotted Ascending Triangle breakout in daily chart of Ultratech Cement. Entry, stoploss, and target as marked on chart.
Disclaimer: This is meant only for education and also to track my own progress in learning TA. I neither recommend nor suggest anyone to take this trade.
