Variations of this basic figure can be either a signal of continuation of the current trend or the beginning of a corrective movement. The classic Forex Triangle strategy counts on the appearance of a strong trading signal at the breakdown of the boundaries of the figure and further price movement, at least to the height of the base of the triangle.

Formation and development of the Forex Triangle pattern

The pattern is a graphical figure of two lines built along a number of local extrema - at least 2-3 in each direction. The sides of the Forex Triangle represent support/resistance lines and must have a point of mutual intersection, actual or calculated. For an expanding triangle, the point of intersection of the sides is to the left of the price (in the “past”), for all other models - to the right of the current price (in the “future”).

The classification of triangles is based on their direction: looking down - descending, going up - ascending, if the slope of the sides is almost the same - symmetrical or divergent triangle.

The key condition for opening positions is the fact of the breakdown of the upper or lower border. Let's consider the symmetrical Forex Triangle as an example for forming and working out a model.

When a Forex symmetrical Triangle pattern is formed, the fading amplitude of price fluctuations can lead to a breakout in any direction: both down and up. This triangle is a common sequence of trend areas and flat periods, and therefore appears on the market most often. The model is considered neutral (uncertain), which means you can place two pending orders - above the upper border of Buy Stop, below the lower border - Sell Stop, and then adjust when the border itself changes.

Target for possible breakthrough:

• or a distance equal to the height of the widest part of the pattern, set aside from the calculated breakout point;
• or two additional lines: through the upper point of the base - parallel to the support line (for a breakout upwards), through the lower point of the base - parallel to the resistance line (for a breakout downwards).

Statistics show that the pattern is more likely to be broken and worked out in the direction of the initial trend.

In terms of profits we can offer:

• some fixed size (according to money management);
• take profit on a line parallel to the unbroken border of the figure (support/resistance);
• according to the highest local maximum of the entire model (when resistance is broken), or according to the lowest minimum of the model - when the support line is broken.

Case Study

The first signal will be a breakdown of the upper or lower border of the pattern, then we wait for at least one retest (i.e. a rollback of the price to the same border, but on the other side), and only after that it will be possible to place pending buy/sell orders at max/min of the test fractal. We place a stop either behind the nearest significant fractal, or according to the diagram above. You can use trailing: either with a fixed step, or move the stop according to indicator readings (for example, according to key ATR points). After one of the pending orders is triggered, it is recommended to delete the second one.

And this is what actually comes out of the Forex Isosceles Triangle figure. A clear pattern was visible, there was a breakdown of the upper border and a retest of the border from top to bottom. After this, a pending Buy Stop order was placed, which as a result did not work, i.e. the breakdown of the upper boundary turned out to be false. The price turned around, broke through the lower border, made a rollback and went down again. The Sell Stop delay set below the test min worked successfully. The initial Stop Loss was set above the last local max.

Forex Ascending Triangle

The pattern (ascending Triangle) is also called a growing or Forex Bullish Triangle. Its appearance means that there is already a bullish trend in the market, at which sellers managed to form a local resistance level, and for some time buyers fail to overcome it. After the breakout, the overall bullish trend should continue.

The upper boundary is a (roughly) horizontal line (resistance), the lower boundary (support) has an upward slope. As you approach the calculated intersection point, the amplitude of oscillations inside the figure decreases. In most cases, the Ascending Triangle is worked out as a continuation pattern of a bullish trend, but the strength of the signal depends on the direction of entry into the pattern and the direction of the breakout.

How to trade? Statistics show that after the formation of a model, the price most often breaks through the upper limit, so a Buy Stop is usually placed behind it.

When the market enters a bottom-up pattern (bullish trend) and breaks through the horizontal border upward, the signal is considered the strongest. If the price enters the pattern from top to bottom (bearish trend), but later still breaks through the upper border, the bullish signal is considered weak. If the Forex Ascending Triangle figure has formed on a downward trend, then after the price enters from top to bottom and breaks through the inclined border (downwards), a bearish breakout will be most likely. We receive an average sell signal.

Descending Triangle Forex

The pattern (descending Triangle) is also called a falling or bearish triangle. The figure means that there is a bearish trend in the market, in which buyers are trying to hold the local support level, and sellers cannot get past it for some time. After the breakout, the global downward trend continues.

The lower border is (to a first approximation) a horizontal line (support), the upper border (resistance) has a downward slope. As you approach the intersection point, the amplitude of oscillations within the figure decreases. In most cases, the Descending Triangle is worked as a continuation pattern of a downward trend, but the strength of the signal depends on the directions of entry into the pattern and the breakdown.

How to trade? Statistics show that after the formation of a descending triangle, the price most often breaks through the lower border, which is why a Sell Stop is usually placed behind it.

When the market enters the Forex Descending Triangle pattern from top to bottom (bearish trend) and breaks down the horizontal border, the bearish signal is considered the strongest. If the price enters the figure from bottom to top (bearish trend), but later still breaks the lower border downwards, the bearish signal is considered weak. If a descending triangle has formed on a general bullish trend, then after the price enters from the bottom up and breaks through the upward sloping border, a bullish breakout will be most likely. We receive an average buy signal.

Expanding Forex Triangle

This pattern (expanding Triangle), the inverse of the symmetrical Triangle, appears rarely, but signals a state of prolonged uncertainty when neither bulls nor bears are willing to take risks. The beginning is considered to be movement on low volumes after the end of a strong trend, and then the triangle is formed due to the emergence of new positions and a gradual increase in volumes.

It is difficult to trade on it, because a clear trading signal can only be obtained with a true breakout and consolidation beyond the boundaries of the figure, and the probability of any direction is approximately the same.

To construct a divergent Forex Triangle figure, the sides of the triangle must be located at the same angle to the horizon, and the point of intersection of the lines must be to the left of the price movement. The figure takes a long time to build, so local max/mins that do not reach the boundaries are possible within the zone.

A breakdown of the boundaries occurs at the end of the strongest impulse, that is, frequent “false” breakdowns are possible. Strong news or the opening of a trading session when the price approaches the border may well break this pattern. In the event of an unsuccessful breakout of the boundaries, a return to the zone and a gradual decrease in amplitude, such triangles can smoothly transform into symmetrical ones and, as a result, form a strong “Diamond” reversal pattern.

How to trade? If the diverging triangle as a Forex figure is not too large, then it is better to wait it out - let the market not decide on the direction. If the pattern is formed with a large scope, then you can trade inside the triangle according to the usual rules of graphical analysis, using border retests as a rollback to one side, at least to the middle line of the pattern. We move the Sell Stop/Buy Stop at some distance from the support/resistance lines; it is also recommended to combine the target levels with the Fibonacci level from the last movement.

Additional rules for working with Forex Triangles

1. For a normal signal, the price breakout should be in the direction of the main trend, and at a distance of 1/2 to 3/4 of the horizontal length of the figure. If the price cannot move out of the “space” between these points, then the pattern is considered weak. Then exit from the pattern is most likely and further movement becomes uncertain.
2. According to classical technical analysis, the Forex Triangle pattern must have at least 5 waves, or at least there must be an odd number of them.
3. To avoid entering on a false breakout, you need to wait until the breakout candle closes. If the candle closes outside the border, then you can enter in the direction of the breakout, if inside the triangle, then the breakout can be considered false.
4. The fastest exit from the Forex Triangle occurs when the last wave unfolds inside the figure without touching the boundaries.
5. Keep an eye on volumes (at least tick volumes). As the Forex Triangle pattern moves, the total trading volume should decrease, and during a breakout it should increase sharply. If, after a breakout, the borders of the triangle “return”, then in order for the new model to be successfully worked out, this “return” must take place on a falling volume.

The Forex Triangle figure appears more often than any other figure precisely because it symbolizes the most common state of uncertainty in the market, or the struggle between buying and selling. Understanding how to work with triangles is mandatory when working with any asset and in any trading conditions.

John J. Murphy gives one of the clearest definitions of the characteristics of this technical analysis pattern:

“The minimum requirement for each triangle is to have four anchor points. To draw a trend line, as we remember, two points are always needed. Thus, to draw two converging trend lines, each of them must pass through at least two points."

As shown in Fig. 1, the “triangle” begins at point 1, that is, where a consolidation of an upward trend is formed. Prices decline to point 2 and then rise to point 3. However, point 3 is located below point 1. The upper trend line can only be drawn after prices fall from point 3.

Consecutive dots on the top line are declining, on the bottom, point 4 is above point 2, and point 6 is above point 4. According to Murphy, only when the price rises above point 4, and the trader has the opportunity to draw two converging technical levels, can he assume that a symmetrical “triangle” is being formed.

The model ends when the price goes beyond one of the levels - upper or lower.

Fig.1. Reference points of a symmetrical “triangle”

The vertical line to the left, drawn from point 1, is considered the base of the figure. And the point where the support and resistance levels intersect is the top.

Symmetrical triangle false signals

John J. Murphy it just states the frequently encountered fact of a false breakout of a symmetrical “triangle”. However, he admits that he cannot:

• explain the cause and nature of these false breakouts;
• find a filter that would filter out false ones and record true breakouts of the levels of the symmetrical “triangle”.

Thus, John J. Murphy wrote:

“For some reason that is difficult to explain, bullish triangles sometimes give a false bearish signal before the uptrend resumes. It usually appears during the fifth and final leg of the triangle. The signal often occurs near the top of the pattern and means that the trend has moved too far to the right.”

Two techniques for measuring a symmetrical "triangle" by John J. Murphy

To measure this figure Murphy suggests using two methods.

He describes the first as follows: “The easiest way is to first measure the height of the widest part of the pattern (the bottom) and plot this distance vertically either from the breakout point or from the top.”

Rice. 2. Measuring the distance that the price will travel in the event of a breakout of the triangle

The second method is to project a trend line from the top of the bottom (point A) parallel to the lower trend line. This upper channel line becomes the upper guideline in an uptrend. Since the direction of a new segment of rising prices tends to repeat the angle of the previous upward segment of the trend (fixed before the triangle was formed), it is possible to establish an approximate time reference for the price approaching the upper boundary of the channel, as well as the price reference itself.

Rice. 3. The symmetrical “triangle” becomes a trend reversal figure

As shown in Fig. 3, the break of the lower line in October 1983 signaled the emergence of a major downward trend. Notice another small symmetrical “triangle” located between coordinates 7.00 and 8.00 on the chart. It indicates a continuation of the bearish trend.

Cornelius Luca on the symmetrical “triangle”

Cornelius Luke notes that “triangles” are very similar to “pennants”, only they do not have a “pole”. Such figures are more common on charts, since their formation requires a smaller price movement. On the other hand, “triangles” have closer price targets.

Like other classics of technical analysis, Cornelius Luca admits that:

• “triangle” models can be divided into four types (symmetrical, ascending, descending and expanding);
• you can build a symmetrical “triangle” using at least four points (two for the resistance line, two for support);
• the price target for this pattern can actually be determined in two ways (by projection from the base or from the breakout line);
• a breakthrough of the triangle levels can occur in any direction.

Rice. 4. Symmetrical “triangle” as a continuation pattern of an uptrend

Cornelius Luke states:

“As we approach the top of the triangle, the trading volume noticeably decreases, which indicates either the duality of the situation or a temporary equilibrium between supply and demand. The breakout must be accompanied by an increase in volume."

From what is shown in Fig. 4 examples show that the width of the base of the bullish triangle is 400 pips (the difference between 94.00 and 90.00). Since the breakout point is at 92.40, we move 400 pips up from it and get the result - 96.40. This is where the price should go if the breakout turns out to be true.

Calculations for the bearish symmetrical “triangle” (Fig. 5) are carried out in exactly the same way, only the price is postponed not up, but down.

Rice. 5. Bearish symmetrical triangle

Alexander Elder on “triangles”

U Alexandra Eldera We find six important additions to John J. Murphy's postulates about these figures of technical analysis. In particular, A. Elder:

Alexander Elder's trading rules when a triangle appears

Alexander Elder does not recommend trading inside the triangle. Especially if the figure is not very large. As the pattern ages, the amplitude of fluctuations becomes smaller, the profit also decreases, but you need to pay the same amount of commissions. And yet Elder does not exclude the possibility of “playing” inside the “triangle”, expecting, of course, a breakthrough. At the same time, he advises adhering to several rules:

• When working inside the triangle, use oscillators such as stochastics and Elder beams to help pick up small fluctuations.
• When trying to figure out whether a breakout will occur up or down on the daily chart, look at the weekly chart. If there is an upward trend, there is a high probability that the pattern will break out upward and vice versa.
• If you intend to buy on an upward breakout, place a pending buy order above the upper border of the triangle, and lower it as the pattern narrows. In the opposite direction - a sell order below the support line, which is gradually moved higher. Once the pending order is triggered, set a stop loss inside the triangle. Theoretically, the price can still return to technical levels, but only with a false breakout will it go deep inside.
• If there is a pullback after the breakout, watch the volume. A pullback with high volume threatens a change in direction. When volumes are low, you can double your position by taking another trade in the direction of the breakout.
• If the price approaches the last third of the triangle, it is better to cancel your pending order. The situation is such that it is almost impossible to predict further price behavior.

D. Schwager on symmetrical “triangles”

D. Schwage considers a symmetrical “triangle” as a trend CONTINUATION figure.

In his book “Technical Analysis. Full course" (see MasterForex-V Trading Academy Library) he writes:

“A symmetrical triangle usually ends up as a continuation of the trend that preceded it.”

To support this, D. Schwager provides several examples on charts of real trading.

Fig.7. The first example of a symmetrical “triangle” by D. Schwager
Fig.8. The second example of a symmetrical “triangle” by D. Schwager

L. Borsellino on symmetrical “triangles”

L. Borsellino in the “Trading Problem Book” (see Library of the MasterForex-V Trading Academy) to determine the direction of a triangle breakout, it uses the intersection of three signals (indicators):

• trend lines on the “triangle”;
• moving averages;
• oscillator.

L. Borsellino wrote:

“By using three indicators—trendlines, moving averages, and oscillators—you have three “opinions” about the tone and direction of the market. At some time or at some price level they may not coincide. Some signals will arrive too early, some will arrive too late. But when consensus emerges among your indicators, you have confirmation that can produce a low-risk, high-probability trade.”

Explaining the nature of the symmetrical “triangle,” L. Borsellino compares its narrowing range boundaries with a spring that gradually “compresses” and then straightens under the influence of accumulated energy. Therefore, breaking through technical levels always occurs with growing trading volumes.

Borsellino advises connecting all the vertices and all the bases with lines. Then the “triangle” model and the point of intersection of technical levels will be determined more accurately. According to Borsellino, the breakout of these patterns most often occurs three-quarters from the base of the triangle to its apex. And it occurs “in the direction of its supposed peak.” Once broken, the moving average helps confirm that the price is back on trend.

Rice. 9. An example of a triangle breakout by L. Borsellino
Rice. 10. The second example of a triangle breakout by L. Borsellino
Rice. 11. The third example of a triangle breakout by L. Borsellino

Eric Nyman's entry points on the symmetrical triangle model

Fig. 12. Opening trades using the E. Nyman system after breakthrough and confirmation

According to Eric Nyman, after passing point “A” (see Fig. 12), which is located at the level of the previous peak inside the figure, the signal for making a transaction can be considered strong (+++).

At point “A”, therefore, a good position is for selling after a breakout of the lower border or buying after a breakout of the upper one.

Unsolved problems of true triangle penetration in the works of the classics of Forex technical analysis

In Fig. 13 shows a typical mistake of the Forex classics. It turns out that breaking through the “triangle” along the trend does NOT ALWAYS lead to the resumption of movement in the previous direction. Accordingly, opening a sell transaction when the SLANT lower side is broken out can lead to losses.

The nature of this error is very prosaic. To confirm their conclusions, analysts selected from the trading history exactly those that indicated they were right. But the criteria for true and false penetration were not taken into account.

Try to find the point of actual resistance breakdown on the next chart yourself, from which the price began to rise.

Fig. 13. False breakout of a symmetrical triangle

MasterForex-V Trading Academy questions:

Let's consider how a true “triangle” is broken through the stages of analysis proposed in the materials of the closed forum of the MasterForex-V Trading Academy.

Fig. 15. First step of triangle analysis
Fig. 16. Second step of triangle analysis
Fig. 17. The third step of the triangle analysis
Fig. 18. The fourth step of the triangle analysis

The name of this figure is probably known to every trader. The “Triangle” is one of the basic figures of the classical market. Let's once again take a closer look at this pattern in terms of the reasons for its occurrence, analysis of its strength (true or false), and also talk about a trading strategy based on the “Triangle” pattern.

First, let's look at the internal classification of triangles. Yes, yes, this figure is not as simple as it seems, and has three subtypes:

1. Ascending Triangle
2. Descending triangle

Let's look at them in order, starting with the symmetrical triangle shown in the figure below. The “Triangle” figure of this particular type is found on price charts more often than others.

Example of a symmetrical triangle

As you can see, a symmetrical triangle is formed by the price sandwiched between two converging trend lines. One of these lines slopes downward, the other slopes upward. Where the price will go when exiting the pattern is not known in advance, however, as a rule, on large scales the exit from the symmetrical triangle occurs in the direction of the trend preceding the beginning of the formation of this pattern.

Traders who trade this pattern generally prefer to place patterns on either side of the tapering top.

Analysis of the symmetrical “Triangle” pattern

As with other technical analysis patterns, I use a simple volume indicator (Volume indicator) to assess the strength and truth of a given pattern. The indicator readings are interpreted as follows:

Symmetrical Triangle Analysis

Volumes tend to increase when the price begins to move in the direction of the main one and fall on its pullbacks and corrections. Therefore, if an increase in volumes accompanies an upward price movement, then the triangle is likely to break through upward and further increase the price. Similarly, if the downward price movement is accompanied by an increase in volumes, then the downward pattern is likely to break through and the price will further fall.

As you can see, in the figure, the increase in volumes initially accompanied the downward price movement. Then, as the pattern formed, volumes began to grow in the direction of price growth, which ultimately determined the price’s exit from the triangle upward.

Trading strategy using the symmetrical “Triangle” pattern

A position is opened using pending orders placed on both sides of a possible exit from the triangle (one to buy, the other to sell). As a result, when one of the orders is triggered, the second one must be deleted.

Trading strategy on the symmetrical “Triangle”

The target level is defined as the distance from the price entry into the triangle to its apex (see figure). is set at a distance equal to the target level, set aside from the exit point from the triangle.

Triangles are a popular price pattern used by traders. There are several different triangle patterns that appear on charts, including:

• Symmetrical triangles
• Ascending Triangles
• Descending Triangles

In this lesson, you will first learn about the symmetrical triangle pattern, then about its use in trading.

In the following lessons we will introduce ascending and descending triangles.

A symmetrical triangle occurs during price consolidation

Symmetrical triangle appears at a time when the price is making lower highs and higher lows. This usually means that neither buyers nor sellers are able to gain control of the market, causing the price to fluctuate within the triangle.

Typically, the price lies between trend lines, which act as support and resistance levels, preventing the price from breaking out and making new highs or lows.

Trading using symmetrical triangles: method one

The first method of trading symmetrical triangles is to look for a breakout on either side of the triangle and then trade in the direction of the breakout. Wait for the candle to close above or below the trend line before looking for an entry point.

The stop loss must be placed on the opposite side of the triangle.

• When buying, stop loss should be placed under the downside.
• When selling, the stop loss should be placed above the upper side.

The profit level is determined as follows: you need to take the height of the back side of the triangle and set aside this distance from the breakout of the trend line.

Trading with a symmetrical triangle: method two

The second method of trading a symmetrical triangle is to wait for price to break out of the triangle and come back, using the sides of the triangle as a support level (in the case of a long) or a resistance level (in the case of a short).

The stop loss must be placed either above the resistance level (in the case of a short trade) or below the support level (in the case of a long trade).

The profit level is the same as in the first method - you measure the back of the triangle and place the profit level at that distance from the entry point.

Conclusions

In this lesson you learned that...

• ... a symmetrical triangle figure means a possible breakdown in any direction;
• ...you can trade using a symmetrical triangle by placing a trade in the direction of the breakout the moment price breaks the triangle. The profit level, in this case, will be placed at a distance equal to the back side of the triangle from the entry point;
• ...you can also use a symmetrical triangle to trade by waiting for the price to move back, placing a position where the price found support (long trade) or met resistance (short trade). The stop loss will be set above or below the resistance or support level respectively. The profit level, in this case, will be placed at a distance equal to the back side of the triangle from the entry point.

When starting to write any article, you want to make it, first of all, unique and inimitable. Subscribers to my site should find answers to all their questions in my articles. For this reason, I have to re-read a bunch of literature and articles from sites similar to mine.

As a result, it turns out that creating a unique article is not at all difficult. Unfortunately, almost all owners of Forex sites download information from each other, and almost all articles are like carbon copies. Of course, this is outrageous, it’s not like he doesn’t have his head, but oh well, let’s get back to the topic.

In almost all books and on all websites, traders agree that graphic analysis figure triangle- a figure of uncertainty. And although it is classified as a trend continuation figure, this does not always work.

Types of triangles

There are 4 types of triangles in total, one of them is a reversal figure, and three trend continuation figures. You must understand that all this is conditional and each transaction must be approached individually.

Reversal patterns include:

• diverging triangle.

Continuation figures include:

• symmetrical triangle;
• descending triangle;
• ascending triangle.

Constructing a triangle

You can construct any of the above triangles using just 4 points.

Other types of triangles are constructed using the same principle. In the case of symmetrical, descending and ascending triangles, the mandatory rule is the lines must converge, for an expanding triangle, diverged.

Triangle Breakout

In various books on technical analysis they write: " The exit from the triangle, in most cases will be opposite to the entrance". This means, if before the formation of the triangle, the trend was up, then the exit from the triangle will be up (exception, divergent triangle). But, in the same books on trading, there are phrases like: " It is impossible to determine in advance which direction the exit will be.".

Therefore, I suggest not to guess, but to use the only correct method, wait for the exit (breakout) and follow the price.

If we see that the price is being squeezed into technical analysis figure Triangle, then why should we rush? The price will not go anywhere, there is time to wait. But when the triangle breaks out, this is our signal in which direction the market is going to move. This is where you can come into play. We enter at the retest of the broken level and trade using the trend.

Where to place take profit?

Only one question remains unresolved: where to place take profit?

To calculate profit, you need to set aside the maximum width of the triangle from the place of the breakdown. Lay down a few pips and wait for the take.

Why does the technical analysis figure Triangle appear at all?

Re-reading the material presented on other sites and in various books once again, I came to the conclusion that the people who write the description of the Triangle figure (no matter which one) do not fully understand what is actually happening in the market.

Many people write: " The market weakened and therefore a triangle appeared"Nothing like that. The market maker confused the trader so that he does not understand where to trade. The price is up, then down and the novice trader, trying to catch the movement, jumps along with the price, but only enters at the very end, when the market turns.

This means there is not so much weakness in the market as panic. Traders don’t understand how to trade, and a big player needs to drag everyone into the market so that all the money is in the market.

I caught myself thinking: " What difference does it make whether I understand or not, the main thing is that there is profit", but still, I would like to explain my vision of the appearance technical analysis figures Triangle.

Technical analysis figure Descending triangle

The presented figure shows a technical analysis figure of a descending triangle. In this context, when the price enters the triangle from below, in other words, there is an up trend, the breakout should take place upward and everything will be correct and according to the law.

But, if there was a downtrend and a descending triangle appeared, then where should the price go? According to book logic, down, but understanding the essence of support/resistance levels, I can say that this would not be correct.

Why? Let me explain, the fact is that the descending triangle has a lower border that is nothing more than a support level. In one of the articles he described that such even levels can only happen in one case, when a major player enters with pending orders.

And what happens. A major player constantly bribes from the lower limit, gaining the desired position and stubbornly maintaining this level. What is he waiting for? Well, firstly, when the position is collected, and secondly, when buyers weaken. At this moment the upward breakout will take place.

Ascending Triangle

The figure is the opposite of a descending triangle. I think it won’t be difficult for you to determine the logic of this model. Where do you think the price will go? Up? No, the price will go down.

I specially drew the upward trend preceding the ascending triangle. Yes, only in this model, the upper border of the triangle is nothing more than a resistance level. By analogy with a descending triangle, we understand that a major player is holding the level and enters from it with pending orders, gaining a short position.

Symmetrical triangle

We can agree with the description of a symmetrical triangle. If before the triangle the trend was up, then the exit should be up. After all, nothing has changed. The beginning of the trend was preceded by a set of positions, and in order to change the trend, the position needs to be unloaded, which we do not see.

In this context, a symmetrical triangle can only mean one thing: a major player is gaining a position.

Divergent triangle

The point of the divergent triangle is to throw unnecessary fellow travelers out of the market. Typically, such models are very protracted; the figure can take more than 2 weeks to form.

It is very inconvenient for trading, because it is not clear in advance what it is, whether a diverging triangle is forming or a new trend is starting, but stops must be set. In most cases, stops are placed behind the nearest Hi or Low, and of course, they are taken down with the next movement.

In most cases, a divergent triangle is indeed a trend reversal pattern.

Conclusion

Having re-read the article again, I think it is very well written, with a very detailed description of what is actually happening in the market. Now you know what triangles are, what the essence of their formation is, you have figured out what to do and where is the best place to enter a position and how to calculate take profit.

And yet, what distinguishes a great trader from a beginner? Experienced traders keep a journal of transactions, analyzing which they identify various nuances of a particular figure. We must do the same. A trader must have an advantage over others, and it is statistics that give this advantage, otherwise we will be no different from drainers.

In conclusion, I will only add:

Each case is individual. A trader's main weapon is anticipation. Enter only into understandable situations, and don’t guess.

I hope the article is useful to you and you will highlight a lot of new things. Be sure to check out the full list. Good luck to all of us in trading.