Ascending Triangle Pattern Swing Trading System
The Ascending Triangle Pattern Swing Trading System Is Another Explosive Chart Pattern Trading System That Can Bag You A Lot Of Pips Easily If You know what to look for.
- The ascending triangle chart pattern forms when two converging trendlines (support levels & resistance levels) converge to form an apex (point).
- The ascending triangle chart pattern is generally considered a bullish formation and it usually forms during a currency pair uptrend as a continuation pattern.
- This ascending triangle chart pattern is confirmed when the currency pair price breaks out of the ascending triangle formation to the upside and closes above the upper resistance trendline.
- If however, when the currency pair breaks out to the downside, the ascending triangle now is a reversal pattern.
HOW TO SPOT THE ASCENDING TRIANGLE CHART PATTERN
- Firstly, the market has to be in an uptrend and there will come a time when it will slow down(consolidate) with it hits resistance levels. Price will fall and find support on a rising trendline. Price gets squeezed into a tight spot(more like a coiled spring!) and then a breakout happens
- The two important clues are the upper horizontal resistance line & the rising support trendlines. You must be able to spot these and draw them and wait for the breakout to happen.
HOW TO TRADE THE ASCENDING TRIANGLE CHART PATTERN SETUP
Trading the ascending triangle chart pattern is very simple and here’s how:
- Once you’ve identified the formation of the ascending triangle pattern, you wait for a breakout candlestick to break the resistance line to the upside. Make sure that, that breakout candlestick CLOSES first above that resistance line, ok?
- Then next thing you do is place a buy stop order 3-5 pips above the high of that breakout candlestick.
- Then Place you stop loss. You have a couple of stop loss placement options: the first option is to place it down below the support line which is the best option. The second option is to place it halfway point between the resistance and support line. Another alternative is to place it anywhere from 5-30 pips below the low of the breakout candestick.
- Your take profit target should be 3 times what you risked in pips or you can use the height of the pattern (in pips) and calculate your profit target price level.
ADVANTAGES OF THE ASCENDING TRIANGLE PATTERN SWING TRADING SYSTEM
- It is a very robust & reliable trading system in a strong trending market where you can make profits very easily.
- It is price action trading at its best-no other forex indicators are required.
- It is easy to spot the trading setup and wait for the breakout-if you know what to look for.
- if you trade in larger timeframes like the 1hr and 4hrs or the daily chart, your profits in pips would be big.
A FEW PROBLEMS WITHE THE ASCENDING TRIANGLE PATTERN SWING TRADING SYSTEM
- depending on the timeframe you are trading in, the stop losses may be quite large, therefore you need to determine your trading risk before placing your trade(s)
- such is the nature of the forex market, don’t expert a 100% success rate on every ascending triangle pattern formation.
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In probability theory a normal distribution is a kind of probability distribution with a set value of random variables. The normal distribution formula is: Normal distributions are valuable in statistical analysis and is used a lot in trading to set values on random variables of future distributions that are not known. Normal distribution states that under market conditions over many average samples of data of random variables with set boundaries of movement the distribution of price data is thought to converge back into a normal distribution of the historical mean as the quantity of the sample size grows. A normal distribution of prices is a very common type of expected future distribution value that is expected in technical analysis for traders looking for reversion to the mean trades in overbought and oversold markets. A standard normal distribution has two main parameters for measurement of price action: the mean and the standard deviation from a historical average. Inside a normal distribution of prices this is the probabilities of ranges of price action occurring inside and outside standard deviation parameters from an average. 68% of the observations are within +/- one standard deviation of the mean 95% are within +/- two standard deviations 99.7% are within +- three standard deviations In trading, normal distribution theory is used to create the range parameters of Bollinger Bands and Keltner Channels. These technical indicators are used to trade reversion to the mean strategies in the markets as they set the odds that a market extended far from a key average of prices will return to the mean.
$SPY remains in a huge long term range since the January 26th unadjusted all time high of $286.63. Price is bullishly over all key moving averages. Last week price formed a price range while elevated over the 10 day EMA. With $276.50 support and $280 resistance. The 10 day EMA has remained over the 50 day EMA after the May 9th crossover. RSI is at 63.52 which is not overbought and has room to trend higher. The MACD remains under a bullish crossover. The $VIX at 12.18 is very low historically. The Average True Range (ATR) has stayed steady at 2.41. It remains a low volatility market. There are 194 stocks at all time highs. 266 stocks are at 52 week highs. This is what a bull market looks like. The stock market continues to be led by small caps $IWM and the Nasdaq 100 $QQQ. Big cap ETFs $SPY and $DIA have lagged and they could play catch up into the second half of the year.
Contents:4 Trading System Ebooks: Format: PDFTitles:1) Forex Hidden Systems2) Forex On-Line Manual for Successful Trading3) Forex Trader4) One More Zero: How To Trade The Forex Like A Pro In One Hour5) Templates Manual