To help you memorize the different types of triangle
breakouts, just think of facial breakouts.
Ascending triangles usually breakout to the upside. So when
you think of ascending triangles, think of breaking out on your forehead.
Descending triangles usually breakout to the downside. So
when you think of descending triangles, think of breaking out on your chin.
Symmetrical triangles can break either to the upside or the
downside. So when you think of symmetrical triangles, think of breaking out on
both your chin and forehead.
In the case of the
symmetrical triangle, you want to position yourself to be ready for both an
upside or downside breakout. A perfect time to use the one-cancels-the-other
(OCO) order! Don’t remember what an OCO order is? Go review your types of
orders!
In this scenario, GBP/USD broke out on the upside and our
long entry was triggered.
Unlike the ascending and descending
triangles which are generally bullish and bearish signals, symmetrical
triangles have NO directional bias. You must be ready to trade a breakout on
either side!
The third type of triangle is the symmetrical triangle.
Rather than having a horizontal support or resistance level, both the bulls and
the bears create higher lows and lower highs and form an apex somewhere in the
middle.
Descending triangles are generally bearish signals. To take
advantage of this, our goal is to position ourselves to go short if the price
should breakout below the support level.
Descending triangles are basically
the opposite of ascending triangles. Sellers are continuing to put pressure on
the buyers, and as a result, we start to see lower highs met by a strong
support level.
What we are looking for is a breakout to the upside since
ascending triangles are generally bullish signals. When we see a breach of the
resistance level the proper decision would be to go long.
The story behind an ascending
triangle is that each time the price reaches a certain high, there are several
traders who are convinced about selling at that level, resulting in the price
dropping back down.
On the other side, there are
several traders who believe the price should be higher, and as the price begins
to drop, buy higher than its previous low. The result is a struggle between the
bulls and bears which ultimately converges into an ultimate showdown…
Ascending triangles form when there
is a resistance level and the market price continues to make higher lows. This
is a sign that the bulls are slowly starting to gain momentum over the bears.
SSLFX GURU works with any trade station or broker. However,
we recommend using the ActivTrades trade station. We have personally researched
and used ActivTrades and have found they are committed to offering their
clients fast and efficient deal execution. ActivTrades also offer traders a
high level of professionalism and customer service.
If you are new to Forex trading you can sign up for a free
demo trading account through ActivTrades. This demo account will allow you to
make pretend trades with no risk and at real market prices. Once you are ready
to open a live account, we suggest you use ActivTrades as your broker.
The third way you can spot breakout
opportunities is by looking for triangles. Triangles are formed when the market
price starts off volatile and begins to consolidate into a tight range. Our
goal is to position ourselves when the market consolidates so that we can
capture a move when a breakout occurs.
It pays to trade with ActivTrades. When you have a trading
account with ActivTrades, you are eligible for discounts and rebates toward the
signal subscription.
Channels are useful because you can
spot breakouts on either direction of the trend. The approach is similar to how
we approach trend lines in that we wait for the price to reach one of the
channel lines and look at the indicators to help us make our decision.
Notice that the MACD was showing
strong bearish momentum as EUR/USD broke below the lower line of the trend
channel. This would’ve been a good sign to go short!
WHAT HAPPENS IF I CHOOSE NOT TO CONTINUE AFTER 30 DAYS?
Towards the end of your 30 days, we will e-mail you a
monthly subscription information. If we do not receive a response from you,
your signal will automatically expire and you will NOT be charged again.
Another way to spot breakout opportunities is to draw trend
channels. Drawing trend channels are almost the same as drawing trend lines
except that after you draw a trend line you have to add the other side.
When drawing trend lines it is
best if you can connect at least two tops or bottoms together. The more tops or
bottoms that connect, the stronger the trend line.
So how can you use trend lines to
your advantage? When the price approaches your trend line, only two things can happen.
The price could either bounce off the trend line and continue the trend OR
price could breakout through the trend line and cause a reversal. We want to
take advantage of that breakout!
Looking at the price is not enough
however. This is where using one or more of the indicators mentioned earlier in
this lesson could help you tremendously.
Notice that as EUR/USD broke the
trend line MACD was showing bearish momentum. Using this information we can
safely say that the breakout will continue to push the euro down and as
traders, we should short this pair
The first way to spot a possible
breakout is to draw trend lines on a chart. To draw a trend line you simply
look at a chart and draw a line that goes with the current trend.
The signal software and trading team monitors the markets 24
hours a day. Signals and alerts are sent only when trading opportunities occur.
For this reason, the time alerts sent will vary from day to day.
How to Trade Breakouts Using Trend
Lines, Channels and Triangles
Just like breakouts on your face,
the nice thing about breakout trading in forex is that opportunities are pretty
easy to spot with the naked eye! Unlike the former, you don’t even have to look
in the mirror!
Once you start getting used to the
signs of breakouts, you’ll be able to spot good potential trades fairly
quickly.
EZYFX4U is based on the trading concept utilized by SSLFXGURU Trading, a foreign exchange trading institution, which has been in operation since 2011. EZYFX4U trading program offers attractive managed fund services using proven manual and automated trading strategies. EZYFX4U is a managed investment service wherein a customer gets a higher than average (12-36%+) return on investment per year.
