Learning how to trade triangles
After all the confusion created around the current situation I decided to write an entire article about what the market is printing in the charts and how to trade it.
Triangles is a common pattern identified as a corrective patterns in trends. There is a variety of triangles that the market will eventually print in every trend, regardless the timeframe. We can see triangles that are made in 15 min timeframe, 1 hour TF or even in monthly charts. The bigger the TF, the bigger the strength of the triangle.
Since December 15th, the market started what some called a bottom, a trend change or the end of the bear season. Far from that, what the market is probing one more time is that triangles are corrective patterns that in a very high percent of probabilities are continuations of the trend. Currently we have made what it looks from ABCDE or what it seemed a flat correction, which in this case the odds are on in favour, since a should have been touched the base of the leg A before starting the leg C.
Therefore, my vision here pattern is the ABCDE pattern which I´m trading. I posted some calls with very high probabilities of turning points where me and my followers made very good profits, like at the end of the leg C
the buying pressure detected in the middle of the leg D
a further correction after the long signal
the ether detected
and the last days of the bulls before the last dump
So let´s back to the pattern. An occurs when the lower is rising while the upper is horizontal. This shows that swing lows are rising but the rallies are stopping near the same . This kind of triangles are usually identified in uptrends as a continuation of it. Of course it doesn’t mean that we could see it in a downtrend as well, so in my opinion, the end of the leg E is going to be a massive bull trap. I expect to see a fakeout of the leg D, remember what happened in October 15th in , massive wick up, many got trapped.
Meanwhile we have to pay attention to the end of the D, where to close our shorts and when is the proper moment to buy again to get advantage of the leg E. The breakout of the point D in the chart and a violent move to the downside is less likely in the current situation, but me as a trend trader I only enter in a position when my tells me is the right moment.
Measure your entries, plan your money management strategy and don´t fall in FOMO/FUD, this market love to try to trap us from time to time. As always I´ll keep you guys updated, thanks for watching.
If you appreciate my work, I´d love to get a “LIKE” from you 🙂
Public Telegram channel https://t.me/Babyjungletrading
Open your account in Bitmex and get a 10% discount on your trade fees https://bit.ly/2UiJzzT
Open your account in Binance https://bit.ly/2Hbo1Bn
Published at Fri, 22 Mar 2019 12:05:52 +0000
