Triangles forming here? I learned from youtube that these tend to trade opposite each other and it really seems to be true
also with swissie:
I’m still new at the charting patterns and price action
any advice on trading these? If my memory serves me you wait for it to consolidate
and trade the breakout in whatever direction
Hi gchild
There are many price patterns and triangles are a key shape that occur many times in the FX market. You can get quite deep into analysing triangles, I would recommend looking into bearish and bullish flags.
It is a little hard to see the full picture on your charts above but when a triangle forms it is because there is a horizontal support or resistance area that is holding firm as price attempts to break that area.
There are several ways it can setup, for example: It could be forming a continuation pattern where price has previously been going down and is making lower highs but has formed equal lows along a horizontal support and resistance area. Price is squeezing into a narrow band and as the highs are getting lower it would suggest there is more selling pressure than buying, but price is also up against a key support line. These situations can make for both great opportunities and also great risk with volatility and false breakouts occurring often.
On your EURUSD chart above you can see the horizontal resistance at 1.3300 price bounced off there 3 times before breaking through, once price did breakthrough it the retraced back to the previous resistance area (1.3300) which now looks like it is acting as a support level. This is one of the most important aspects to understand in my opinion, the FX market is all about support and resistance, price reacts off levels, once it breaks through typically that level will change from support to resistance or vice versa.
Can you provide more zoomed out pictures? It’s hard to determine the formation since so few candles are showing.
Oops, I’ll make sure to post bigger screenshots from now on sorry. I only captured those two and its so small because I had the windows tiled or cascaded or whichever option sticks them all together side by side.
What you can do in MT4 is right click on the chart, click “Save as picture,” and then select “Active Chart (as is)” to save the ENTIRE chart, along with the price levels and time zone.
Hope that helps!
Thank you I will do it this way from now on.