Symmetric triangle

Beginner Questions
1

Can anyone please explain how to trade symmetric triangle set up ? I am worried here … market could jump in either direction here …so how it is going to be traded ? This pattern seems risky set up

anyone trade this pattern ? Please show some light on entry/exit strategies for this set up .

you may click on the image to get it zoomed.


2

Consolidating price action creates a triangle. Bulls are tied with bears. Think of it as a spring compressing, it’s gonna shoot out up or down. You don’t know which way. Somewhere below and somewhere above the triangles consolidating point you enter.

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it’s subjective, as all of trading is, but when it comes around it can be highly profitable depending on how large(big the timeframe) is it built on. Let me know if you have more questions bud

3

Yes… how do I trade this pattern ? entry/stop loss ? How do I get an edge here ?

4

Do you understand the concept and now you’re asking me exactly how I trade? Well that’s part of your strategy you’ll have to devolop yourself. There are as many ways to trade breakouts as their are traders. A scalping strategy might use a 1 pip sl while a position trade might use a 50 pip sl. Like I said it’s subjective to each trader and how they personally trade. I suppose the most common method is when price breaks the trend lines of the triangle and price moves past historic price action of the triangles forming candlesticks.

5

Thanks. That was very much helpful

6

I don’t trade these patterns too often, but, there are many points of entry…

Let’s say you’re bullish

  1. Go long @ the 2nd higher low, with a stop beneath the first
  2. Go long @ a break of the pattern
  3. Go long @ a breakout / retest of the pattern
  4. Go long @ a break of the significant pivot high
  5. Go long @ a breakout / retest of the significant pivot high

etc etc