Triangle Trading Continuation Chart Pattern Breakouts
Gold Triangle Chart Pattern Formation
What Is Triangle Trading?
Triangle Trading is a technical analysis price chart pattern made by drawing trendlines price range that gets narrower over time because of lower tops and higher bottoms. There are different variations of a triangle chart pattern including ascending and descending triangles. Triangles are very similar to wedges and pennants. Technical analysts can see a breakout of this triangular chart pattern as either bullish on a breakout above the upper trendline or bearish on a breakout below the lower trendline.
How Do You Profit From Triangle Trading?
As the price range of a Triangle chart pattern gets narrower, the price normally but not always, breaks out in the direction of the primary main trend. Sometimes the breakout can be a reversal breakout, so stop-loss is always a must have tool in trading and even investing. Breakouts are normally explosive large fast moves where risk exposure to the market and potential profits are made relatively quick.
Low-Risk High-Reward Trading Investing with Triangle Trading
Triangle Trading is one of the most consistent ways of low-risk high-reward trading and investing in stocks, forex, commodities compared to other trading and investing methods and systems. Losses are inevitable so the key is to cut your losses when small and let your winners run using money management trailing stops. Triangle Trading allows you to have tight stop-loss with reward risk ratios of 3:1 plus. A trading system like this in the long term will result in consistent profits providing your using money risk management also to manage leverage. Over-leveraging can kill any trading account how matter what trading method or system your using.
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MarketClub Trade Triangle Scans and Alerts
The Trade Triangles are MarketClub's proprietary indicators. This system uses a variety of timing thresholds to produce signals on three charting time frames. By confirming trends on more than one time frame, you are putting the mathematical odds in your favor that you will be on the winning side of that swing.
What are the MarketClub Trade Triangles?
The Trade Triangle signals are produced by a triggering of our proprietary algorithm. The RED and GREEN triangles signify changes in trend on a monthly, weekly and daily level. The triangles are produced for all 230,000 symbols we track. Once the triangles are produced, they are never removed and are able to be backtested according to your own unique trading style.
MarketClub suggests a filtering approach when following the Trade Triangle signals. The filtering approach differs between security types and trading style.
The Trade Triangle algorithm is comprised of weighted factors that include, but are not limited to price change, percentage change, moving averages, and new highs/lows.
GREEN triangles suggest positive trends.
RED triangles suggest negative trends.
The Trade Triangle algorithm is not intended to catch tops and bottoms, but instead identifies the majority of a swing trend. By allowing the trend to mature before a triangle is issued, we can trust that the trend is firm and consistent.
Note: The triangles will always be produced regardless of trend strength. The triangles should be used when you have a significant trend strength. You can use the Trend Analysis Score or other technical analysis studies to ensure the trend strength is appropriate for trading. For example, if a market is in a sideways motion, the triangles will still be produced even though you may want to be on the sidelines for that particular market.
MarketClub Recent Trade Triangles
Recent Trade Triangles allow you to filter down the most recent Trade Triangles for the daily, weekly and monthly time periods. This will help you pick markets that are primed to move in both positive and negative directions. This is an area where you can compile a list of symbols to watch based on a recent Trade Triangles.
To create a list of recent Trade Triangles, follow these four easy steps.
1) Choose what you want to look for (i.e. Equity, Future, Forex, Mutual Fund or Index).
2) Choose what Trade Triangle (daily, weekly, monthly), or Chart Analysis Score (+100, +90, +75.) you would like to search for.
3) Choose how far back you would like to search (today, yesterday, 3 days, 1 week or 1 month).
4) Hit Scan.
How do I interpret the MarketClub Trade Triangles? When would I enter/exit?
Equities
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry points and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
Futures
Weekly Triangles determine trend and possible entry points.
Daily Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.
Forex
Weekly Triangles determine trend and possible entry points.
Daily Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.
ETFs
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry point and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
Mutual Funds
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a longer term trader, it is possible to use just the monthly triangles to determine position direction.
Indices
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your monthly and weekly triangles correspond in direction.
Options
We do not offer a suggested method for trading options. We have many traders that use MarketClub's tools to make decisions regarding position direction and trend strength, however we do not have a suggested methodology to pass to our users.
When are the MarketClub Trade Triangles issued?
The triangles are placed on the chart intra-day as soon as our algorithm is triggered on a monthly, weekly or daily level. The price and the date are placed above/below the signal. The scan will pick up the algorithm's trigger and place the triangle on the respective chart.
Are the MarketClub triangles considered buy and sell points?
Yes, if used in accordance with our filtering technique. Perhaps a better name for these Trade Triangles is "Trend Identifier." Of course no system's signals can be 100% correct, therefore MarketClub suggests to use proper money management, diversification and discipline.
What do the values under the Trade Triangles represent?
The triangle signals are produced by our algorithm. Therefore, the date and price is the exact date and price at which the algorithm was triggered. This date and price is not issued as an ideal point, but at the time at which the trends were marked as a stable reversal.
How do I add the Trade Triangles to my Flash charts?
When you first access the chart, the Trade Triangles will not be automatically inserted. There are three buttons in the shape of triangles on the toolbar.
To add the monthly Trade Triangles, click the triangle with an "M" in the middle, to add the weekly Trade Triangles, click the triangle with a "W" in the middle, and to add the daily Trade Triangles click the triangle with a "D" in the middle.
How do I remove the Trade Triangles from my Flash chart?
Click the highlighted triangle until it returns to the non-active gray color.
What are the numbers in the box that comes up when I put on the Trade Triangles?
The box represents four important pieces of information that you can use to interpret the market. The three triangles on the left marked with an "M" for monthly, "W" for weekly, and "D" for daily, show if the last triangle issued for these time periods where pointed up (green) or pointed down (red). The price that is adjacent is the price at which the Trade Triangle was triggered.
The score below represents the strength and direction of the trend.
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Monthly weekly daily trade triangle buy sell signals on stocks, indices, forex, and futures. Includes Chart Portfolios, Data Central, Smart Scan, Trade School, Alerts, Streaming Chart Tools, Talking Charts, and Real-Time News Scan. Plus free bonus gifts, "17 Money Making Candlestick Formations" and "Keep It Simple" proven trading approach booklet.
