- The Symmetrical Triangle Chart Pattern Forex Trading Strategy &
- The Ascending Triangle Chart Pattern Forex Trading Strategy
Timeframes: Any but should try to use 15minute and above.
Currency Pairs: Any
Forex Indicators: you don’t need any
The Descending Triangle Chart Pattern Formation Forex Trading Strategy Is the exact opposite of the Ascending Triangle Chart Pattern Forex Trading Strategy. That means that the descending triangle chart pattern is considered a bearish chart pattern.
The chart below shows the differences between the two triangle chart patterns:
HOW TO SPOT THE DESCENDING TRIANGLE CHART PATTERN
It is quite simple, really: here’s how:
- First, the market has to be in a downtrend and at some stage, the price will consolidate when it hits a support line and then it will move up but only to find resistance on the downward resistance trendline.
- The Price will continue be to squeezed into a tight spot until it a breakout happens-usually to the downside.
HOW TO TRADE THE DESCENDING TRIANGLE CHART PATTERN
As long as you know how to spot the descending triangle pattern chart formation, trading the pattern should be very easy. Here are the rules of the descending triangle chart pattern forex trading strategy:
- Wait for a breakout candlestick to break and close below the support line.
- Once that happens, place your sell stop order 3-5 pips under the low of the breakout candlestick.
- For stop loss placement, you have a couple of options: first option is to place you stop loss right above the downward resistance line (this is the best stop loss placement option because you wont get stopped out prematurely). The next option is to place you stop loss anywhere from 5-30 pips above the high of that breakout candlestick.
- Your take profit target: you can calculate the height of the pattern and use it to calculate your take profit target price level or you can place it at 3 times what your risked.
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