USDJPY 14 December 2020 - Daily TimeFrame
Hello traders, here is the full analysis for this pair... the market is still in a downtrend and creates a triangle
This is important and emphasizes that traders should not simply trade the pattern whenever the triangle appears.
The figure of the triangle is essentially two inclined lines of the trend. The price is consolidated inside the figure as if squeezing into a spring. And at some point, the price should go beyond the boundaries of the technical figure.
When the triangle is formed, we wait for the exit of the price out of it, which occurs as a rule according to the standard scheme: the breakdown of the face – the rollback to the pierced face – the continuation of the movement towards the breakdown. The development of such a scheme is not difficult. The trading position opens in the direction of breakdown on the price rollback after the breakdown of the triangle’s face.
But it is not always so simple. Quite often there is a situation of false breakdown at the price of the triangle’s border and the return of the price inside the figure.
You can find support and resistance in my chart for breakout happen.
*Support this Idea with a like or Comments if you find it useful* ... Thank you
________________________________⠀
DISCLAIMER: This Information Is Not a Recommendation to Buy or Sell. It Is to Be Used for Educational Purposes Only
This is important and emphasizes that traders should not simply trade the pattern whenever the triangle appears.
The figure of the triangle is essentially two inclined lines of the trend. The price is consolidated inside the figure as if squeezing into a spring. And at some point, the price should go beyond the boundaries of the technical figure.
When the triangle is formed, we wait for the exit of the price out of it, which occurs as a rule according to the standard scheme: the breakdown of the face – the rollback to the pierced face – the continuation of the movement towards the breakdown. The development of such a scheme is not difficult. The trading position opens in the direction of breakdown on the price rollback after the breakdown of the triangle’s face.
But it is not always so simple. Quite often there is a situation of false breakdown at the price of the triangle’s border and the return of the price inside the figure.
You can find support and resistance in my chart for breakout happen.
*Support this Idea with a like or Comments if you find it useful* ... Thank you
________________________________⠀
DISCLAIMER: This Information Is Not a Recommendation to Buy or Sell. It Is to Be Used for Educational Purposes Only
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.