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Triangle

The Symmetrical Triangle : Continuation PatternThe Symmetrical Triangle The symmetrical triangle (or coil) pattern normally occurs during a trend as a continuation pattern. It is essentially a coin flip as to which direction price will exit if it is truly a Symmetrical Triangle. The triangle includes at least two higher lows and two lower highs. Essentially, the trading range becomes smaller and smaller within the triangle. IDENTIFICATION GUIDELINES 1. The Shape of The Symmetrical Triangle – Two price trendlines, the upper one sloping downwards and the lower one sloping upwards so they intersect at the triangle apex. The trendlines need not be of the same length. 2. Formation of The Symmetrical Triangle – There should be two minor swing highs and two minor swing lows touching the trendlines. 3. Duration of The Symmetrical Triangle- A minimum duration of 3 weeks and it rarely exceeds 3 or 4 months long. Anything less than 3 weeks of duration likely to be a pennant formation, not a symmetrical triangle. 4. Volume inside The Symmetrical Triangle – Volumes tends to be decreasing through the formation. Often very low just before the breakout. 5. Pre-mature or False Breakout – Because volume is usually low in during the formation, it takes very little activity to bring about an erratic and false movement in price, talking the price outside of trendlines. 6. Breakout – Price closing below the lower rising trendline confirms the breakout or Price closing above the upper falling trendline confirms the breakout. HOW TO TRADE THE SYMMETRICAL TRIANGLES Trading Rules. 1. Entry – The direction of the break in the pattern can only be confirmed after the break has happened. Either Up or Down. Buy: Buy the Stock a day after Price closing above the upper falling trendline. Sell: Sell or short the stock day after Prices closing below the lower rising trendline. 2. Price Target – The technical price target is to measure the widest distance of the symmetrical triangle, Add the distance to the upper trendline breakout price for a buy target or Subtract the distance from a lower trendline breakout price for obtaining a covering price. 3. Taking Profit – For short-term traders, cover short or sell the stock when the price reaches near to the minimum price target computed in step 2. For intermediate and long-term traders, hold the stock as per your risk & capital management applied before entering into a trade. 4. Stoploss – usually, price closing above falling upper trendline is a Sell Stoploss Or price closing below rising bottom trendline is a buying stop loss. But very often, The gap between breakout price and trendlines is very wide. So it won’t be suitable for a good risk-reward ratio. Without a Good Risk to Reward ratio in trading or investing can never create wealth.
NSE:NIFTYEducation
by Equity-Earningz
Market cycle? Has the major correction started?!Details on the chart, it's very interesting. Draw a triangle for the previous bull rally, copy & paste it on the current bull rally. It fits perfectly. The previous bull rally from Feb 2014 to March 2015 took 393 days and NIFTY went up by 3185 points. The recent bull rally from Dec 2016 to Jan 2018 took 399 days and NIFTY went up by 3277 points. The correction after the previous bull rally took 362 days and NIFTY went down by 2293 points. So based on the same logic, if the major correction has started, we should see NIFTY tat 9000 levels by Dec 2018?! Just for study purpose!
NSE:NIFTYEducation
by nileshgr
Bharti Airtel - Falling from 438 to 395 - Game of patience Someone rightly said - " Why patience isn’t just a virtue in investing, it’s a necessity for Trading" if you want to survive in the markets for long term. If I Can’t Have You Right Now, I Will Wait, Dear Few weeks back it made a high@431 - had started falling but it was not a convincing fall to 403 & pushed upside slightly above 430 levels making new high@438. So, I am asking a question to myself is this the fall which we were waiting for a long time almost like a year as mentioned below in previous update & we have started the same by falling from 438 highs to 395 low in the last two weeks combined. Update on 1st Jan2017
NSE:BHARTIARTLEducation
by WaveTalks
11
Principles of Triangle Pattern (PaisaMania - Learn & Earn)Dear Traders, Teach you about the "Principles of Triangle Pattern". There are 3 types of triangle patterns available. Symmetric Triangle Ascending Triangle Descending Triangle Symmetric Triangle - It is continuous and neutral trend of the price, may break either side of the triangle. Need to confirm the trade with breakout and as well with trend indicators. Ascending Triangle - It is bullish pattern and true breakout will happen only on top line. On top flat line is act as a resistance. If the breakout happens on another side, will consider as a false breakout or pattern failure. Descending Triangle - It is opposite to the Ascending Triangle, bearish pattern and true breakout happen only on bottom of the line. On bottom line is act as a support. If the breakout happens on another, will consider as a false breakout or pattern failure.
NSE:NIFTYEducation
by raj3elite
6