How to Day Trade Descending and Ascending Triangles.

How to Day Trade Descending and Ascending Triangles.

hello traders its a samurai trade here
welcome to this training session in this session I’m going to be discussing chart
patterns specifically ascending and descending triangles learning how to
incorporate chart patterns in your trading and to recognize these patterns
as you trade will improve your bottom line dramatically so as we get underway
I do need to put the risk disclaimer up if you haven’t read one of my risk
disclaimers please pause the video there is a risk of course in trading if you’re
a current member and you haven’t read it for a while please pause the video and
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now get into the education side of it first of all I just need to remind
members that in the members area under the trading a book section there are
four or five excellent books there or reports or chart pattern examples so
please visit the members area to review the books on trading chart patterns so
as you’ve probably heard me say on previous recordings day and swing
trading is really a pattern solving exercise virtually every trading setup
that we trade whether it be the t1 a t2 the 19 at t3 they’re
all patterns that patterns geometric patterns that appear in the market each
and every day now will quite often use indicators with some of those others are
purely visual now when you’re using or drawing
in trend lines it’ll make it easier for you to recognize other patterns that
appear in the market such as ascending and descending triangles and as you’re
about to see they’re very easy to learn but can be very very profitable so
drawing in trend lines as you trade and learning to recognize patterns as they
set up can it really help you catch the big moves now developing the habit of
drawing in trendlines as possible patterns as they form give you a major
advantage over the majority of traders in the market what I’ve got there on the
chart there we can see we get a flagpole a pennant
a falling wedge and what you’ll notice with pennants and falling wedges you’ll
notice the narrowing of what we call the trading range the energy is building up
and with many of these you’ll have an explosive breakout so chop patterns give
you a visual clue of where the market is heading when you use them in combination
with technical indicators to confirm existing signals can dramatically
improve their win-loss ratios now I really recommend this try it just to
learn one or two of the major patterns such as ascending and descending
triangles or double tops and bottoms before attempting to identify some of
the more complex patterns when you look at and review some of the books on
patterns you’ll see there’s literally dozens of them and dozens of different
types of formations etc so if you try to take them all in at once it can be a
little confusing so really focus on just a couple and the ones I recommend are
really the triangles and the double tops and double bottoms they’re probably two
of the most profitable patterns that appear in the market in basically every
market every day with your trade Forex futures or stocks so chart patterns when
use of common sense can give your trading an edge and an edge is all you
need to make money let’s talk about very quickly drawing of trend lines because
what I want you to do is as you trade is to be drawing trend lines in
so technical traders use trend lighted lines to identify trend direction levels
of support and resistance now I’m going to do a separate video on channel
trading and using channels because we could easily devote another 30 minutes
just talking about Channel so I’m going to do a separate video on that one
but there is a right and a wrong way of drawing trend lines and this is what I
recommend is that you may notice a diagram on the right there and the green
circles if any of you have viewed my video on fractal points you’ll see their
actual fractal points now to make it simple a fractal point is when you have
to higher candles or lower candles on either side so the ones up top here we
can see we’ve got two high candles two high candles if you want to make drawing
of trend lines and patterns very mechanical aim for the fractal points it
just makes your trading very very mechanical in nature if you do that now
what it comes down to is it ascending and descending triangles are really
triangles and wedges combined and they’re very very close together so
you’ll see that as we as a narrow price action is getting tighter and tighter
which is really a narrowing of the trading range and they’re really
continuation patterns now they don’t always work out that is we say that with
an ascending triangle we’re expecting a break to be alongside these sending to
the short side well it’s probably 60% right but you’ll quite often see it
trades the other way and that’s where at least if you’re prepared for a breakout
or you know that the energy is building you can be prepared so what you’re
really looking for is these key points as they come together you just want to
be prepared also though that it may break out before the point actually
intersects so you’ll soon get used to that once you recognize them so when we
see a descending or ascending triangle forming we know with a high degree of
certainty that the market is built energy for the next move or break out
the market is entered a trading range and is narrowing learning to recognize
and trade these patterns in real time allows you to prepare to enter a trade
well in advance if you’re a day trader of course time is not on your side
normally that is when you get a breakout you get a breakout and sometimes if the
market has been coiling it’s a very fast breakout and as I point out in the
bottom slide here a high percentage of descending and ascending triangle
breakouts result in an extended or explosive move so it can be very very
profitable so ascending and descending triangles the ascending triangle is a
variation of a symmetrical triangle ascending triangles are generally
considered bullish and a most reliable and found in an uptrend the top part of
a triangle appears flat while the bottom part of a triangle has an upward slant
and you can see there’s basically two triangles here within the one that is
you can see a smaller one you got the bigger picture and you’ve then got a
smaller one forming now I must say also when you pattern we’re a triangle
or a double bottom or double top it really doesn’t matter close enough is
good enough they don’t have to be perfect so just be aware of that now if
we take the descending triangle it’s also a variation of a symmetrical
triangle it’s generally considered bearish and is usually found in down
trends unlike the ascending triangle this time the bottom part of a triangle
appears flat now I’m going to show you a couple of quick snapshots from some
charts in a moment and these flat areas quite often they might be a pivot point
or a floor pivot so quite often you’ll see there you’ve come down you’ve
bounced off the pivot tested it three or four times before finally you get a
break but what you want to be aware of too at times it will go down and test
the floor pivot two or three times maybe four or five and then break to the
opposite direction as well because the sellers just don’t follow through but
the advantage irrespective of which direction you have
the breakout you’re prepared because you know the energy is building now here’s
an example where patterns don’t have to be perfect so you can see with the upper
trend line heading down that there’s a variance of a couple of ticks between
the highs and on the low the flat trend line we can see there that extended over
to be left it’s within a tick so it’s not perfect but you’ve got the formation
of a triangle setting up now that was an $80 move now just drop to $80 a ticks
this is on CL itself then it bounced the other direct in the other direction here
is one where it bounced straight away in the opposite direction so rather go to
the short side which this formation generally has happened it bounced to the
long side but you were you were prepared for it because you could see price
action narrowing the energy was building and of course you’re aware that you can
get a breakout to either the long side or the short side so you’re prepared for
it here we’ve got a quick $100.00 move we can see here that we had support over
one two three over seven or eight candles coming down hitting our lower
trendline and we could see a narrowing of price action so what we see is a
narrowing of the trading range and we’re well prepared now for our members here
you would have used our 34 bounce to enter this particular trade in actual
fact is a couple of opportunities there with the 34 bounce prepared being
prepared for it now it’s a little bit like when you’re trading floor pivots
what you’ve got to be very cautious of is trading up against support that is
shorting when you write its support ideally you want to be buying when
you’re at support but this is something we teach in a day traders fast-track
program but I think hopefully with these patterns you starting to get the general
idea now the black dots by the way are
fractal points so I have an indicator on my TradeStation platform the plots
applet are the black dots as a fractal point and it just makes it
easier when you’re drawing in trend lines so you’ve then got wedges
now wedges are a little different of course to the pennants to flag sorry to
to the pennants and to the triangles but they’re all similar type the similar
outcome what you can see here is they’re rising and ones falling and of course
pressure is building as they get closer so once again in some of the books we
have on our website we’re going to they go into great detail some of these
various patterns so traders that’s the end of this video so it was a very quick
40 minute rundown on patterns and of course we could spend hours running
through these patterns so the next video I’m going to do is on trading channels
and we draw channels in every day as we trade particularly on our high time
frame on our anchor chart because by drawing in a channel on our anchor chart
very very quickly we can glance over to right where we have our anchor chart
situated and we can see immediately what direction the overall higher time frame
is heading in so once again if you haven’t subscribed to my channel please
do please visit my website for more information about the day traders fast
track program thank you very much

One Comments

  • I Am A Day Trader

    October 20, 2018

    "Get the Competitive Edge Now!"


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