In the USD/JPY chart, a nice symmetrical triangle has been forming since may. I’m looking at it on the daily chart, but the trend lines seem to have held on every timeframe. Anyway, I was wandering whether the breakout has occurred yet or not?
I’ve used triangles before, but I’m a total noob with them so this is just my opinion. Drawing anything on a chart is a bit subjective to me, whether it’s trendlines, triangles, Fibonacci retracements or whatever. Mostly because they can change as the market changes, which you show here with two perfectly drawn triangles I think. So to me, chartwork like this is great to create a framework for developing a trade plan, but you really have to focus on the risk management and trade adjustments afterwards.
Yeah I had that second triangle you drew and thought price made a breakout too. It can vary from time to time, I suppose. New triangles can form off old broken ones, maybe? More conservative trend lines/triangles connect the highs only though, so I guess that’s a more reliable basis for breakouts.
Connect as many points as possible. For example, when you draw an upwards trendline, you connect the most possible higher lows available. To bring it a level higher, draw your support and resistant. When both trendline and support/resistant meets, it indicates a strong reversal at that particular price.
I don’t think there is a single “correct” version. If you use triangles / trendlines in conjunction with other technical tools (s/r, candlestick patterns, 00 levels etc), you increase the odds of that triangle being “tradable”.
No, personally never used this pattern for checking the breakouts and thus no much idea about this. As i prefer SMA 200 to know the breakout in higher time frame charts.
