16. How to Trade Triangle Chart Patterns Like a Pro Part 2

[onkar2510]

okadvisors.blogspot. try this for real results!!!!!!!!!!!!

[laton2010]

Hi david, very much thanks for your videos, as I was a good geometric student in the past when I was in the college many years ago. My question is : is triangles patterns on daily time frames? because looks like it takes a ethernity to appear triangle setups on daily tf.is not it?

[tigpips]

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[MrDarbital]

Dave,

What is the difference between the descending triangle, and the bull pennant?

[peluca275]

Hi Dave, it is recommended to apply the same technical analysis for stocks, options, futures and forex or there are differences that we should know?

[FreeFOREXautoROBOT]

its informative,but Forex robot much better

[lotienestodo]

What kind of strategy do you recommend for trading charts patterns?? I mean, do you use some indicators to complement the trading? like MA or RSI

[latitudpv]

Still a newbie buy like your videos.

thank you.

[susanta1011]

excellent video......

[Marwan4Sultan]

Hi David, I just wanted to ask you, Do you trade at the break or do you trade after you calculate the points? Or when you have your target points is that another trade?

[neerajkorde]

the chart you use in descending triangle loks very close to trading a head and shoulders pattern. How do you make a choice ? Also is there an indicator when a descending triangle leads to an uptrend (like increasing volume leading to peaks in the triangle pattern) ?

[InformedTrades]

you can have patterns' within patterns but to me on this particular chart its the decending triangle that sticks out the most to me. Best Regards, Dave

[khrisf]

Dave, I have a few questions.. when you explain you are using graphs form 2002, 2003,... 2006. Does this strategy applies to long term trading only? or can i use it for 24 trading?

Oh, and what is the working percentage of this strategy cuz it cant work all the time right?

Thanks for your work on the net!

Keep it up!

[InformedTrades]

Hi khrisf, I think most traders would agree that the technical strategies I am presenting can be used on any timeframe. As far as accuracy by themselves probably not very accurate the idea is to combine multiple pieces of analysis that line up together to give you higher probability trades. Best Regards, Dave

[ForexFrenzy]

Very clear and informative

[InformedTrades]

Hi ForexFrenzy, Thanks for the comment and for watching am glad you like them. Best Regards, Dave

[ney123456789]

CAn you give me defferences between triangles and pennants?. To me they look pretty much the same.

Thank you! And keep up the good work!

[InformedTrades]

Hi, Thanks for the comment I am glad you like the videos. A pennant is a triangle but one that forms after a extreme runup or rundown in the market that forms the pennant flagpole. If you go to my basics of trading course in the free course section of InformedTrades there is a video on pennants there. Hope that helps. Best Regards, Dave

[jstruble92]

In the symetrical triangle chart... wouldnt that be a head a shoulders reversal in the first 1/3 of the chart? Would that pattern prior tot the triangle further support the triangle to the downside?

[InformedTrades]

hey jstruble92, good call that is a head an shoulders and yes I think most traders would agree that anytime multiple patterns line up that is a good sign. Best Regards,

Dave

[skabez]

you got some good guns goin on there Dave...

[InformedTrades]

Thanks man I am going to start selling tickets to the gun show soon;-)

Dave

[sophiekalkan]

ok I am a little confused on the selling part. my las 2 questions i promise.

when you reach the sell point am i safe to assume that you are selling all stocks on this stock with maybe a view to buy back when it reaches the target point or do you just sell and cut your losses (or maybe gains you have made) with a view not to lose any more?

also can you explain the "stop" manouvre?

thanx and i will not ask anymore questions on this one : )

[InformedTrades]

Hey Sophiekalkan, No worries you can ask as many questions as you want. I am however limited to the amount of space here and it seems you need a little more of an in depth explanation. With this in mind if you would not mind heading over to the InformedTrades homepage there is an ask/answer question section there where if you post I will have enough room to write a response that I think will work out your confusion. Best Regards, Dave

[sophiekalkan]

thanx for the reply. also when it is a down trend and you trade does this mean that you are selling short. so you are trying to make a profit on the falling value?

thanx and keep up the good work.

[InformedTrades]

Hi Sophiekalkan, Thanks again for your kind comment. With the triangle chart patterns most traders look to trade the break of the triangle. So it doesn't matter so much as to whether the market is in an uptrend or a downtrend but which side the triangle breaks. In other words if the market breaks out of the top side of the triangle then most traders go long(Buy). Conversely if the market breaks out of the bottom of the triangle then most traders go short (sell). Best Regards, Dave

[sophiekalkan]

hi there. good stuff. very informative.

just a quick question about the target point.

the target point here is 5 points. does this mean that you buy when it goes up 5 points from the breakout or you sell after the 5 points has been reached.

thanx.

[InformedTrades]

Hi Sophiekalkan,

Thanks for the comment I am glad you like the video. In this particular example we are buying on the break and then selling after the 5 point target has been reached. Let me know if there are any other questions. Best Regards, Dave

[regikeyz]

Hi Dave - Me again!

Okay mild confusion:

* In your video AND in some resources on net, way to measure target for symmetrical triangle is distance from bounce1 to bounce2

and add to breakout.

BUT in the Murphy book, the distance used is the base distance.. i.e. from bounce1 to the vertical line intersecting the line from bounce 2 and 4.

Im sure you have the Murphy book (which I think is vague).. did I misread it, or is there just several ways to take targets?

Many thanks

[InformedTrades]

Hi Regikeyz, I do have John Murphy's book however I am traveling this week so I don't have it with me. As with any piece of technical analysis however there are always different styles and therefore ways of reading/trading based on pattern analysis. As this is a basics course I try to put out the most commonly sited ways to trade the patterns which I feel I have done here but there are certainly others. Hope that helps. Best Regards, Dave

[Especially4Naasira]

Ah.. thats fine! I just wanted to be sure I hadnt confused/misread anything. Many thanks!

[InformedTrades]

my pleasure thank you again for the comment. Best Regards, Dave

[atlas10]

"nicely done again Dave, im looking on seeing all your videos,!!!!

-Thank You

[jeffguroo]

So few people offer suggested stop and profit targets. Though I have known about these patterns for a while, I have not had any idea where to place my stops. Thanks again, David.

[InformedTrades]

Hi Jeffguroo. Thanks again for the feedback, let me know how this addition works out in your trading. Best Regards, Dave