Triangle breakout trades are great for getting good profits, in a quick time frame. The problem with trading chart patterns is that you have to be there when it happens. Which is no easy task. I can tell you that many times I will be watching the pair and just when I go to do something else, that is when the price will break through and I miss the trade. I hate it when that happens.
So today lets look at a triangle on the Eur/Usd.
4HR chart *not click on the chart to learn about a trading system.
We have the resistance at 1.4920 and the support at 1.4626. Then from the support to the resistance we have a rising trendline underneath. That is what forms the triangle.
So the way to trade this is to draw the support, resistance and trend lines. Than zoom in to a 10 min chart to see if there is more room to see the price moving. So lets look now at the 10 min chart.
When the price breaks one of those lines than a new candle opens enter in the direction of the trade. Keep your stop loss above or below the most recent support or resistance. Open multiple lots in order that you can take quick profits than move your trade to break even and let the rest run if the pair decides to trend.
Also keep the total amount of all lots open at 2% to minimize risk.
Thats it give it a try and email me or write a comment here if it works or if it doesnt work.
One more thing to keep in mind is that there is news to keep up on and that can make the price go a bit crazy. Also learn about the upcoming NFP new release on Forex Crunch.
Then support and resistance can be ignored. To learn more about a news theory on the Eur/Usd read this post.
Winner’s Edge Trading, as seen on: