only for self study
The classic strategy :
Entry: Take a long position at the breakout of the resistance (blue)
1hour or 4hour closing
Stop: The stop is placed blow the last lowest
Target: Theoretical target of the pattern
Advantage: False breakouts are rare (only 16%)
Disadvantage: Pullbacks are usual (60%) so it could be judicious to wait a pullback to take position
- The exit usually occurs towards 80% of the distance of the pattern.
- Sharping and strong breakouts give better performance
- The performance is better when the triangle is formed at the beginning of a trend
- Avoid taking a position if the breakout occurs before the 3 / 4 of the pattern
- Pullbacks are harmful for the performance of the pattern
The classic strategy :
Entry: Take a long position at the breakout of the resistance (blue)
1hour or 4hour closing
Stop: The stop is placed blow the last lowest
Target: Theoretical target of the pattern
Advantage: False breakouts are rare (only 16%)
Disadvantage: Pullbacks are usual (60%) so it could be judicious to wait a pullback to take position
- The exit usually occurs towards 80% of the distance of the pattern.
- Sharping and strong breakouts give better performance
- The performance is better when the triangle is formed at the beginning of a trend
- Avoid taking a position if the breakout occurs before the 3 / 4 of the pattern
- Pullbacks are harmful for the performance of the pattern