Using Triangles- in Technical
• 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)
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.
Facts about triangles
• Triangles can be best described as horizontal
• 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
• They have a tendency to repeat again and
• Triangles indicates its direction before it give
you a breakout.
Nature of Triangle
• They consist of
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.
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
Continuation Vs Reversal
• As per pattern it is Continuation
• As per EWT it is Reversal.
• These Expanding triangles are the
inverse(mirror image) of Regular Triangles
• The volume in the expanding triangles
• Hear trading within the triangle can be
Indicators and You
• 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
• 2% or 5% Stop Loss
• Pivot points
• Fib Levels
• Trend line
Before placing your stops. Keep an eye on “Risk” and “Volatility”
• They are the violation of Support/Resistance
• They stand as a road map for traders.
What we can understand from a with
– 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