فوركس ساتو

OPPORTUNITY 5 – TRADING TRIANGLES
“Triangles” frequently occur in the market, and this is a good way to
FOREX Surfing Draft
catch some nice price move. Some traders make great profits
trading “triangles” alone. The idea is similar to what you may (or
may not) already know, with a few twists specifically for “Surfing”.
Triangles develop as a kind of consolidation pattern (sideways
movement). Prices make a series of lower highs, and higher lows
(read this sentence again to notice the difference). If you draw a
trend line along the tops, and along the bottoms, you will notice that
the lines converge together, forming a triangle. Take a look at the
following chart to see what I mean.

The general theory of triangles is that once prices penetrate the lines
of the triangle then the market tends to continue in that direction.
For the “FOREX Surfing” techniques you look for triangles on your
5 Minute candle charts. Once you spot a triangle in progress then
there are two ways you can trade them (in the “Surfing” strategy).
With either approach you’re best to go for your 20 (or so) pips.
Catch some nice and easy profits.
Strategy 1 – This is quite simply to watch the triangle in progress.
Once it crosses the line of the triangle then look for a “wave” to
“Surf” using one of the three Variations taught earlier in this
eBook. The problem with this trading variation is that often once
the price penetrates the triangle lines it often moves 20 pips or so
quickly, not giving you a good chance to catch a small wave.
FOREX Surfing Draft .forex sato
Another thing to watch out for are “false breakouts”. Look at the
above chart, at “Triangle 2”. There you see a breakout going up. I
attempted this trade by placing an entry order using “Basic Variation
1”, but nothing happened (dud) as it turned around. I caught it later
on the way down.forex sato
Strategy 2 – This one is a little bit more complex, but is “Higher
Probability” for you to catch your 20 to 30 pips on a triangle.
What you do is you look at the high and the low of a swing that
reaches (pretty close at least) to the triangle lines, near the middle of
the triangle. You then place two entry orders (kind of like what you
did in eBook #1). You place a “buy” entry order at the price of the
top of the zigzag near the middle of the triangle (plus your broker’s
spread). You also place a “sell” entry order at the price of the
bottom of the zigzag near the middle of the triangle (without any
extra pips). The middle of most of your triangles (seen in 5 Minute
candle charts) ideally should be less than about 30 pips wide.
Simply use the size of the middle of your triangle for your stop, but
if it is over 20 pips (but no larger than 35 pips) then simply use a 20
pip stop.
As the market continues in the triangle the zigzags will get smaller
and tighter, until it eventually breaks the triangle lines. Once it
breaks through it will most often continue in that direction. It will
soon pass through one of your entry orders. At this point cancel
your other entry order. Prices should continue in your direction to
limit you out for 20 to 30 pips (easily).forex sato