![]() ![]() There are three types of the triangle pattern: Ascending triangle ![]() What are symmetrical, ascending, and descending triangles? Some traders consider it a sign of smart money manipulating the market to bring in more market orders to fill their positions. A false triangle breakout occurs when the price breaks out of the pattern and the subsequent price bars move back into the triangle, faking out traders who traded the breakout. There is always the risk of false breakouts when trading the triangle pattern. So, to get your target when trading a triangle breakout, measure the base of the triangle and then project it from the breakout level. The target of a triangle breakout should be the same size as the base of the triangle. What should be the target of a triangle breakout? With this strategy, the trader tries to go long when there is an upside breakout of a triangle pattern in an uptrend, or go short when there is a downside breakout of a triangle pattern in a downtrend. The triangle breakout strategy is a trading technique that aims to trade the continuation of the prevailing trend following a price breakout from a triangle consolidation pattern. The upper boundary of the triangle represents the supply line (resistance level), while the lower boundary represents the support level or the demand line.īeing a continuation pattern, the price is more likely to break out in the direction of the trend preceding the formation of the triangle pattern, although it can occur in either direction. The triangle represents a temporary pause in the market, both from the buy-side and the sell-side - the supply line diminishes to meet the demand. The triangle is widest at the beginning of its formation, but as the market continues to trade in a sideways pattern, the trading range keeps narrowing until the price breaks out of either the upper or lower boundary. Attaching a trendline across the swing highs and swing lows gives the shape of a triangle. It represents a consolidation in the price trend and is formed by narrowing price swings. Breakout Triangle Strategy – conclusionĪ triangle is a continuation chart pattern that has the shape of a triangle.Symmetrical triangle breakout strategy backtest.Descending triangle breakout strategy backtest.Ascending triangle breakout strategy backtest.Breakout triangle trading strategy (backtest and example).What are symmetrical, ascending, and descending triangles?.What should be the target of a triangle breakout?.What is the breakout triangle strategy?. ![]()
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