iCharts Discussions

[systrader]

[systrader]

STRATEGY 6 Triangles

I trade the Wyckoff method which calls for parallel trend channels and stays away from the head and shoulders patterns, diamond formations, and other complicated chart formations. However, I would be re-missed if I did not touch on the concept of ascending and descending triangles. Like the flag formation an ascending or descending triangle will develop after a strong move in a stock. The part of the triangle formation I like the most is that the reactions are smaller and smaller each failed attempt at the breakout level.

Funny enough when a trade goes against me, the ascending or descending triangle is the one formation that you can literally feel pulling away at your life. If you are short, the stock fails at the high of the day, so you immediately feel relieved as the stock backs away. This flash of hope is replaced by fear as the stock quickly turns back up again and does not break the previous low of the day. This process goes on and on, for what feels like ages, and by the time the stock finally breaks out, you already knew you were toast two hours into the formation.



Triangle Rules

1. Stock needs to have a strong move with price and volume
Once a high or low is set, each reaction from that swing point should become more shallow
2. Buy or sell short the break of the daily range
Place your stop below the last swing reaction if long and above the last swing if short
3. Profit target is the length of the move that preceded the triangle formation

Trading Profile – Triangles

1. Less concerned with a particular time of day and more focused on trading the setup
2. Likes to see a number of inside bars and consolidation patterns on a chart
3. Enjoys riding the primary trend to profits, regardless if this takes a few minutes or a few hours
4. Only looking to trade a stock once, in order to reap the rewards of the next major move

With Thanks
@SYSTRADER(happy Trading)

[systrader]

How much is it benificial to trend counter i.e doing oppposite of what do you think ( If you think for BUY while watching the chart go for SELL and vice versa) this is a concept well used earlier by renouned trader but how much is it BENIFICIAL in real life during market hours not during off hours because drection is clearly visible in charts after market hours but poduces whishaps only while the charts are live running.


(Comment on above)

Thanks
@SYSTRADER

[systrader]

[systrader]

a)Trades – TA is best used to identify short term trades. Do not use TA to identify long term investment opportunities. Long term investment opportunities are best identified using fundamental analysis. Also, If you are a fundamental analyst, use TA to calibrate the entry and exit points
b)Return per trade – TA based trades are usually short term in nature. Do not expect huge returns within a short duration of time. The trick with being successful with TA is to identify frequent short term trading opportunities which can give you small but consistent profits.
c)Holding Period – Trades based on technical analysis can last anywhere between few minutes and few weeks, and usually not beyond that. We will explore this aspect when we discuss the topic on timeframes.
d)Risk – Often traders initiate a trade for a certain reason, however in case of an adverse movement in the stock, the trade starts making a loss. Usually in such situations, traders hold on to their loss making trade with a hope they can recover the loss. Remember, TA based trades are short term, in case the trade goes sour, do remember to cut the losses and move on to identify another opportunity.


@SYSTRADER(Happy Trading)

[systrader]

[vinodgogia]

i have studied many charts since long, and understood one thing " price movement takes lace first and then any other indicator moves accordingly. and there is no method to predict price, it is merely estimated and which moves some time and many times fails. every instrument has different tools which works sometimes. There is no single strategy suits all instruments.

[systrader]

[sherbaaz]

hi,
if you want to catch early trend reversal find where accumulation is ending and go long or find where distribution is ending and go short.

in your poll you have not included volume & momentum to find trend reversal where as...

momentum precedes price, speed of momentum precedes momentum and volume precedes speed of momentum.

If you can find ways/method to see above then u can catch early trend reversal as its not indicators/osc/ma/support & ret etc which changes the trend its imbalance of supply and demand which changes the trend be it a tick chart or a monthly chart.

regds,
[/b]

[systrader]

Shoutbox Snapshot at 9.48 AM
nifty sellgiven @8584 and 8575




with the name of rohit.kumar4000(@SYSTRADER)

[systrader]

Ichart snap shot @ 9:49 AM

[systrader]

Nifty chart @ 10:00 AM




SL given is 8607.90

[systrader]

SL trailed at 2:17 PM @ 8575 the entry point


by rohit.kumar4000(@SYSTRADER)

[systrader]

Nifty Chart @ 2:19 PM

[systrader]

50% profit booking Message @ 2:35PM