Using Triangles- in Technical
Analysis
By
Sangamesh.K.S
Index
• What are triangles & why they are formed?
• Types of Triangles
• How to trade triangles?
• Placing Stop-Loss
• Str...
What are Triangles?
Triangles are the patterns formed when upper
and lower price level collide (converging trend
lines) at...
Facts about triangles
• Triangles can be best described as horizontal
trading patterns.
• As the market continues to trade...
Contd.
• They have a tendency to repeat again and
again.
• Triangles indicates its direction before it give
you a breakout.
Nature of Triangle
• They consist of
 Trend Line
 Major Support/ Resistance
• Volumes will be low before breakout; Volum...
When they are formed?
• After a impulse wave; Triangles are corrective
wave(As per wave)
• When market start to move sidew...
Continuation Vs Reversal
• As per pattern it is Continuation
• As per EWT it is Reversal.
Types of Triangles
• Ascending triangle
• Descending triangle
• Symmetrical triangle
– Others
Triangles and parts of Triangles
Trading Ascending Triangle
An example where
an Ascending
triangle failed to
give a bullish
breakout!!!
Trading Descending Triangle
Trading Symmetrical Triangle
Expanding Triangles
• These Expanding triangles are the
inverse(mirror image) of Regular Triangles
• The volume in the exp...
Indicators and You
• MACD
• RSI
• ADX etc
• “It isn’t important which indicator is the best;
but you need to know your ind...
Stop-Loss
• 2% or 5% Stop Loss
• ATR
• Pivot points
And More
• Fib Levels
• Neckline
• Trend line
Before placing your stop...
Premature Breakouts
• They are the violation of Support/Resistance
and Trend-line.
• They stand as a road map for traders.
What we can understand from a with
Premature breakouts?
– We can predict the breakout( Bullish/ Bearish)
• TIP: Stay away ...
Triangles repeat again and again
Measuring Triangle
There are 2 techniques adopted to measure the
targets for triangle
• Parallel trend-line method
• Fibon...
Elliott Wave Theory
It consist of
• Impulse wave
• Corrective wave
 Zig-zag Correction
 Flat Correction
Zig-Zag Correction
Flat Correction
EWT’s Perspective
What we learn from Elliott’s wave?
Do Patterns Work?
Yes, Patterns work
Really?
NO
Why we think in Patterns?
• Your pattern is based on our decision
• Your decision is based on your thinking
• Your thinkin...
Sleeping Triangle
Using Triangles  in Technical Analysis
Using Triangles  in Technical Analysis
Using Triangles  in Technical Analysis
Using Triangles  in Technical Analysis
Using Triangles  in Technical Analysis
Using Triangles  in Technical Analysis
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Using Triangles in Technical Analysis

  1. 1. Using Triangles- in Technical Analysis By Sangamesh.K.S
  2. 2. Index • What are triangles & why they are formed? • Types of Triangles • How to trade triangles? • Placing Stop-Loss • Strategies for trading triangles • set price targets for triangles • EWT’s perspective of triangles • Using indicators & triangles • Do patterns really work? • Sleeping Triangles (An research and findings)
  3. 3. What are Triangles? Triangles are the patterns formed when upper and lower price level collide (converging trend lines) at a single point called Apex/cardle.
  4. 4. Facts about triangles • Triangles can be best described as horizontal trading patterns. • As the market continues to trade in a sideways pattern, the range of trading narrows, and the point of the triangle is formed. • The triangle shows losing interest in an issue, both from the buy side as well as the sell side: the supply line (support) diminishes to meet the demand.
  5. 5. Contd. • They have a tendency to repeat again and again. • Triangles indicates its direction before it give you a breakout.
  6. 6. Nature of Triangle • They consist of  Trend Line  Major Support/ Resistance • Volumes will be low before breakout; Volumes kick high after breakout. • Triangle speak its direction (Bullish/Bearish) • Price never touch the cardle/Apex.
  7. 7. When they are formed? • After a impulse wave; Triangles are corrective wave(As per wave) • When market start to move sideways. • Range bound Market; Triangles are anticipation of breaking S/R
  8. 8. Continuation Vs Reversal • As per pattern it is Continuation • As per EWT it is Reversal.
  9. 9. Types of Triangles • Ascending triangle • Descending triangle • Symmetrical triangle – Others
  10. 10. Triangles and parts of Triangles
  11. 11. Trading Ascending Triangle
  12. 12. An example where an Ascending triangle failed to give a bullish breakout!!!
  13. 13. Trading Descending Triangle
  14. 14. Trading Symmetrical Triangle
  15. 15. Expanding Triangles • These Expanding triangles are the inverse(mirror image) of Regular Triangles • The volume in the expanding triangles increase • Hear trading within the triangle can be profitable.
  16. 16. Indicators and You • MACD • RSI • ADX etc • “It isn’t important which indicator is the best; but you need to know your indicator” • Tips: Keep an oscillator indicator and a moving average indicator. And keep experimenting to know more.
  17. 17. Stop-Loss • 2% or 5% Stop Loss • ATR • Pivot points And More • Fib Levels • Neckline • Trend line Before placing your stops. Keep an eye on “Risk” and “Volatility”
  18. 18. Premature Breakouts • They are the violation of Support/Resistance and Trend-line. • They stand as a road map for traders.
  19. 19. What we can understand from a with Premature breakouts? – We can predict the breakout( Bullish/ Bearish) • TIP: Stay away from the stock if the stock is showing violation in both upper and lower levels. Look for breakout for trading; They are the only reliable source
  20. 20. Triangles repeat again and again
  21. 21. Measuring Triangle There are 2 techniques adopted to measure the targets for triangle • Parallel trend-line method • Fibonacci Method
  22. 22. Elliott Wave Theory It consist of • Impulse wave • Corrective wave  Zig-zag Correction  Flat Correction
  23. 23. Zig-Zag Correction
  24. 24. Flat Correction
  25. 25. EWT’s Perspective
  26. 26. What we learn from Elliott’s wave?
  27. 27. Do Patterns Work? Yes, Patterns work Really? NO
  28. 28. Why we think in Patterns? • Your pattern is based on our decision • Your decision is based on your thinking • Your thinking is based on your recognition.
  29. 29. Sleeping Triangle

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