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OPPORTUNITY 6 – MORE TRIANGLES & FLAGS
In “Opportunity 4” we looked at symmetrical triangles, with both
sides slopping inwards towards each other. Sometimes you will
encounter other kinds of triangles. Here we will look at the other
kinds of triangles you may encounter (in 5 Minute candle views).forex sato

In a “Flat Bottom” the highs get progressively lower, while the lows
remain relatively the same. In a “Flat Top” the lows get
progressively higher, while the highs remain relatively the same.
In a “Descending” triangle, both the highs and the lows get
progressively lower, and conversely in an “Ascending” triangle both
the highs and the lows get progressively higher.
There are two main ways to trade these triangles. “Strategy 1” from
“Opportunity 4” is the same with all of these, so just reread
“Strategy 1” from that section.
“Strategy 2” won’t work as described from the above section for
these types of triangles. However half of the idea does work. For a
“Flat Bottom” and for a “Descending” triangle you would place
your buy entry orders the same way (but not your sell entry orders –
which will be explained in “Strategy 3 & 4” below). For a “Flat
Top” and for an “Ascending” triangle you would place your sell
entry orders the same way (but not your buy entry orders – which
will be explained in “Strategy 3 & 4” below).
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Strategy 3 – For Flat Bottoms & Tops
This is the strategy for your entry orders on the FLAT side of the
triangle. Again, on the sloping side you would use “Strategy 2” as
described above.
As in “Strategy 2”, you look at the height (in pips) of the middle of
the triangle. Divide the number of pips in half (round up if you have
an odd number of pips), then place your entry order that far from the
flat side.
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.
Strategy 4 – For Descending & Ascending
This is the strategy for your entry orders on the down side of a
descending triangle, and on the up side of an ascending triangle.
Simply flatten this side and essentially do “Strategy 3” for this
triangle. Look at the price level of the point of your triangle (where
the two lines converge). This now becomes the price level of your
“flat” side. Then look at the height (in pips) of the middle of the
triangle (from your triangle trend line to the imaginary flat line).
Divide the number of pips in half (round up if you have an odd
number of pips), then place your entry order that far from the
imaginary flat side.forex sato
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.
To be quite honest with you I don’t like trading descending and
ascending triangles. I haven’t traded them that often, and when I did
my results were only “so-so”. I’ve included it here for your
information of how I’ve attempted these trades, but you’ll find the
other strategies more successful. Realistically you’ll do better
waiting for the prices to break out of this formation and then catch a
nice little wave for a 20 pip profit. Read the next section on “Flags”
as such triangles often behave much like “flags”, in fact they really
are flags, except the prices keep getting tighter and tighter together.
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