Swing Trading The Triangle Chart Pattern is one of the best ways to make money in the financial markets. The Triangle Chart Pattern is easy to predict and once you acquire the skill of watching a triangle chart pattern in the making you can set yourself up to trade it.
I’am going to keep this post simple with lots of snapshots for all my loyal and new readers. I appreciate all of your kind feedback and I’am happy to hear about how some of my writing has helped you in the jungle of financial markets.
I usually write about my personal opinions and some articles have been about what to expect next in the financial markets based on my experience trading. One thing I’ve learned about the world, is that the world or mother nature, the universe or whatever you want to call it, is fractal. The world works the same at every degree, no matter how small something is or how large something is, no matter the time span involved, no matter the size of the company or even the size the group of people your dealing with.
Today’s post isn’t about the DOW or the Russell 2000, it’s about the currency markets. The currency market is the largest market in the world, when you watch the patterns unfold…it’s all about human emotion…
A long time ago I wrote about something James Dines called Murmurations. Murmurations are with us every where on planet earth if you have the sense to look for it. Most of this post today is dedicated to what I was doing this morning trading FOREX. For the longest time I investigated FOREX and from what I read about it, I thought it to be a huge risky bet. The fact of the matter is, the whole world is a huge risky bet if your not experienced in niche that your dealing with, that’s why so many people go broke when they quit there job and start up a restaurant. This article isn’t necessarily about FOREX per say, but the fact that no matter what you do in this world that relates to mother nature, murmerations are involved.
So, enough with the rhetoric, let’s dive in…
Looking at the chart above, you’ll notice the Triangle Chart Patterns from this mornings trading. The chart is a five minute candlestick chart from 14:00 yesterday afternoon central standard time to 06:45 this morning. I wasn’t up all night either, if your wondering. Yesterday afternoon I noticed on the hourly chart that there was a corrective wave in the making and made 3 trades selling the EUR against the USD, the 3rd trade was at the top. I didn’t trade the triangles all night, they are only there to prove a point that the Triangle Chart Pattern is a powerful pattern to trade by, however, I did trade the final Triangle Chart Pattern at around 06:00 when I saw the smorgasbord unfolding. Patterns aren’t certainties, they are however, high probabilities.
The chart above shows how the price did a retest of the apex of the final Triangle, I made another trade selling the Euro against the USD.
The chart above shows a fifteen minute time span of the EUR USD doing a retest, notice the 3 candlestick tails indicating a top. The final candlestick shows an engulfing candle in the making, notice the crossover on the stochastics. I made another trade selling the Euro against the USD. At this point, in total, I’am now leveraged 100:1
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The chart above shows a one minute chart, notice the diversion on the RSI to the price, indicates confirmation.
The chart above shows the channel from the quick descending price, notice the hammer which is bullish. Notice the diversion in the price to the RSI momentum indicator indicating a bottom. This is where I got out of my positions and called it a day…I went to the kitchen and made a smoothie
The chart above shows you what happened after I liquidated my positions.
The chart shows you how the rest of the day went for the EUR USD…Too bad I didn’t go long…oh well. One thing about trading, and I found out the hard way, play by the rules…take your profits and then go for a walk. More often than not you will misjudge the market and come out with a loss. Yesterday I didn’t play by the rules and I paid the price, I had a 40% loss. I had a nice run up until yesterday, I thought I was 10 feet tall and bullet proof. I don’t have any screen shots of that one, I wish I did, just to show you that you don’t always win.
The chart above is an hourly chart of the EUR USD. Your looking at a bearish ascending channel.
I present the charts above to show you that no matter what you trade, Triangle Chart Patterns give you high probability setups. I took a loss yesterday because after thinking about what I did wrong, I wasn’t trading any patterns, I wasn’t trading based on my own rules, I was trading like I did when I was 18 years old. This morning I made a 15% profit so it will take several trades to get back what I lost yesterday not including the trades that don’t work and get stopped out.
There are several pivot points coming up all you have to do is read last weeks post. The pivot point for September 27th seems to be the time of a major trend change, what’s going to happen on that day, I don’t know, it could be a bottom or a top. The next pivot point is for next week around August 15th. I ended up getting out of my junior stocks. I’am going to sit back and see how things transform over the next couple of days. I might buy some TZA if the chart patterns tell me to.