"Take Risks: If you win, you will be happy; if you lose, you will be wise. Nothing ventured, nothing gained."

Friday, October 30, 2009

The Art of Triangles.

HiHi!!! O yes if u haven realize... this is my first image post!! lol. Ok lets cut the crap and share the good stuff aye??

This chat shows 30M timeframe. This trade was done in the morning (Singapore Time) with no news or anything. (USD/JPY)

Notice that the trendline i drew forms a descending triangle. To get this line, there are a few points to note. The high close for each candle forms a descending trendline that links quite well, and as u can see from the chart, the level of 91.26 was touch several times but bounce back. For my case, 5 times before it break down. This 5 points hence form the straight line below, forming a descending triangle.

Point of entering will be after candle close below 91.26. It signals a moment of downtrend i should say. Reason being its a 30M chart. It maybe temporary retracement on bigger timeframe. With proper TP set on either FIBO support or trailing stop. A nice 40pips profit is achieveable. SL will be just above the horizontal trendline. 91.25 and above for this case.

But some points to note as well, notice that the stochastic is showing otherwise? Yea,but i entered trade due to past experience that sometimes these oversold oscilators still remains oversold when there is a breakdown. So i chose to ignore this signal.

So as u can see, my time of using this technique is during NO NEWS period. And i also chose to ignore one of my indicators. Right or wrong? More tests needs to be carried out i guess.

Thats all folks. New traders can try this technique cause as a Noob myself i managed to close a profit trade. WHY NOT U??!!

We are still surviving, are we not?

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