I have been trading Forex for some time, but the one thing i always seem to come back to when i hit an area of failure is trendlines and patterns, and i always feel comfortable with trendlines and patterns, probably because it was one of the first strategies i ever traded. I have traded patterns many a time in the past, especially wedges which seem quite common and channels as well, but for me none of those patterns ever seemed profitable enough for myself, and whether i was doing something wrong i do not know, but one pattern i have found a certain sense of joy in trading is triangles. Symmetrical and Ascending/Descending triangles are a good pattern i like to trade, and this thread will be my journal for trading these patterns. I'm using the H1 chart and will post ALL my trades for all triangle patterns i trade. Feel free to chip in if you want to comment as constructive criticism is best.
The first trade today is a Symmetrical triangle on AUDCHF on H1. On my trades i'm always going to try and get a risk reward of at least 2:1, but the target and stop for this trade are at around even. Target for this trade is at the blue line 0.84731
RULES OF MY CURRENT SYSTEM:-
1) Wait for a triangle pattern to form
2) Watch for a breakout to the correct side (ie Bearish break for ascending triangle)
3) Wait for retracement back to the trendline
4) Wait to see bearish divergence if you're selling short on the retracement/pullback
I get my targets by measuring the highest point to the lowest point of the pattern. I always trade with a risk reward of at least 1:2. Usually when trading on the 15 minute charts this is risking 10 pips to make 20 pips.
The first trade today is a Symmetrical triangle on AUDCHF on H1. On my trades i'm always going to try and get a risk reward of at least 2:1, but the target and stop for this trade are at around even. Target for this trade is at the blue line 0.84731
RULES OF MY CURRENT SYSTEM:-
1) Wait for a triangle pattern to form
2) Watch for a breakout to the correct side (ie Bearish break for ascending triangle)
3) Wait for retracement back to the trendline
4) Wait to see bearish divergence if you're selling short on the retracement/pullback
I get my targets by measuring the highest point to the lowest point of the pattern. I always trade with a risk reward of at least 1:2. Usually when trading on the 15 minute charts this is risking 10 pips to make 20 pips.