Trading Triangles - Grounded Trading - Technical Analysis Education - EDUCATION FOR ALL PEOPLE
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Trading Triangles – Grounded Trading – Technical Analysis Education

Trading Triangles - Grounded Trading - Technical Analysis Education

Hello traders Lord ray with heightened crypto calm your number one source for cryptocurrency technical analysis and blockchain education in this video We're going to be doing another episode of grounded trading this edition we're gonna be talking about the Triangle there are different types of triangles, and we're gonna go into each one So in this video you know by the end of it you should be able to Know the difference between each triangle and how to identify them on the charts and then how to trade them so Let's get into it So what are triangles Triangles are either a continuation pattern or reversal pattern essentially triangles form levels of price contraction the triangle forms from the price action nara's over several price swings If trend lines are drawn along the highs and lows of the price action the trend lines converge towards each other this creates the appearance Of the triangle there are three types of triangles the ascending triangle The descending triangle and the symmetrical triangle all these patterns develop in uptrend or downtrend It is mandatory that you have two reaction highs and two reaction lows minimum without this criteria Met the triangle is not valid the ascending triangle occurs when the lower trendline is rising or the upper trend line is horizontal This shows that swing lows are rising But their rallies are stopping near the same resistance level the descending triangle Occurs when the upper trim line is sloped to downward while the bottom trend is Horizontal and the symmetrical triangle occurs when both trend lines are moving towards each other with a form of convergence The first triangle we're gonna actually look at and draw hypothetical here is the ascending triangle? Okay This is in its nature Bullish okay, we're gonna go into the price action and what goes on with it, so forgive my drawing, but this is the best way to You know did the hypothetical right? So let's just say from an uptrend right you're making higher highs Higher lows higher highs higher lows and then we spiked up, and we hit this the cell wall okay? Right here, and then we break down to lower prices and Then we come back up and we hit the same cell wall. It's right there, but then when we break down again We actually make a higher low than our previous low and then we can hit that cell wall once again And then we break down into lower prices And so what's going on all right now. We just get our trend line out And plot this right Let me change up the color here real quick for you perfect so We have this the civil right some market maker has put it up, and it's preventing the price from going higher but after an uptrend This is the ascending triangle right we have this as a bullish continuation pattern, okay? So When you can't find any more buyers and clearly we can't push the price up anymore as a buyer the price breaks down Okay, and so from there We establish a low wherever it may be But after we couldn't find any more sellers of course the buyers come back in push the price to higher prices But again the cell walls here can't budget so we sell off again, but when we break down we have a higher low Than our previous low So from there once again. We try, but the cell wall is too great We break down again, but then hey there a time now We've made a higher low But we made you know two consecutive higher lows and a previous or our first low Right so you have your reaction low so we talked about two up top and two at the bottom Validating it and making this a textbook ascending triangle pattern So what happens why do we see nice jumps up at the end of these triangles? Well this seller whoever it is sees the accumulation.

This is also We call buying pressure and so with this buying pressure this Person this market maker whether it's an institution or it's just a person but with BOTS they They get nervous and they they don't want to be in The way of this anymore because they know that they could get wrecked if they don't uh Let go but this one person or this one institution with this cell wall they lift it up and once they lift up That cell wall from all this accumulation we see huge spikes in price Okay, and so the same can be said Okay, this is a bullish continuation ascending triangle okay We also have a bullish reversal pattern right so We have a make lower highs lower lows lower highs lower lows in the downtrend. We come up when we hit a high And we break down to lower prices again Oh, nothing new there, but we come back up we form the same high right we hit a cell walls been put up But when we break down accumulation All right the same thing same cell wall break down to lower prices And we again have formed two consecutive higher lows than our previous low and three times now we try to push this price out we couldn't do it, but You know with this market maker here with their cell wall they get nervous and they don't want to be in the way when this does break out because there is so much buying pressure and Accumulation, that's what these upward sloping trend lines signify and represent on on the charts right so from their Break to the upside so we have a we have two different forms of the ascending triangle the ascending triangle Continuation, and then the ascending triangle reversal So let's take a look at a real-life Situation of a triangle of an ascending triangle and then talk about how to trade it all right? So we're looking at Bitcoin to the US dollar on the daily chart if the Knicks exchange all the way back to 2016 if we look back here we had this period a one-year no trend period we were range bound but then eventually we broke out a kilos resistance here and From there we spiked up We came down we touched our previous level of resistance use it as support on very high levels of volume signifying possible trend reversal We'll get into that later. You know another time, but what I see going on here That's what we talked about right? Accumulation And I like using the horizontal line here just helps me Like using the candle body closes and also the wicks So I see this week and this can of water close. I'm disregarding this Exaggeration so as you can see a clear two reaction highs really three reaction high multiple reaction lows bouncing along this area accumulating Behind pressure is occurring okay, and this is a daily So this is a very significant pattern that was developed and it all started really down here November of 2015 all the way to May 7th of 2016 very long time many months this pattern developed, and that's the thing the Slower the time scale the longer the pattern develops the way, it's gonna be way more significant than the shorter time scale patterns So this is an ascending triangle on the daily, okay, so from there we Made a 1 reaction low to 3 for a ton right just mini and then we made 3 reaction eyes alright so valid sitting triangle what happened? Broke to the upside and there we went So you may ask How do you trade these? How would you trade an ascending triangle with no Fibonacci? No other tools very very simple so get your measuring tool over here You got from your widest area of your triangle you measure all the way to the top Ya Could say this would be the top because of the wick it's fine 170 to make sure you measure from that breakout then 172 This is back when Bitcoin was at 100 $467 172 measure move up this was your target Of course it went a little higher They're gonna go higher, but just think about like this if you traded this and took your profit, and you spent a few weeks You would look this is a the sixth or excuse me June of 2016 If you wouldn't you to be mad at me for a little bit then you'd have broken down alright, just chopped around for a while and then broken and you know that was June 6th and You wouldn't have seen the same price again until October, okay, so taking a trade short-term There's nothing wrong with it because it takes months many months to get back to those levels once you break down like that it's very possible, so this is just a rough estimate a rough way – The best one of the best ways to trade these ascending triangles alright so the next triangle we're gonna make hypotheticals with the descending triangle, okay, so it's essentially the Inverse of an ascending triangle right, so let's just say from a downtrend right lower lows lower highs lower lows lower highs lower lows Then all of a sudden you come up, and you make a high And then you hit this Wall right this huge by wall, but then you come back up Break down to little prices same wall here and again, so We plot this Okay So a descending triangle Okay, what happens on the price you have a downtrend you make a high you come down you hit this buy wall okay? I so once the sellers realize they can't move the price any lower the buyers come in They make a high, but the high is lower than his previous Eye, so when you when the buyers figure out they can't run the price any higher We break down to lower prices, but again that buy walls.

They're Preventing the price from going lower so again. We move back up, but we make a lower high once again We have now created and established a validated descending triangle Come down once again and then from there Anything can happen you know we don't have to hit this eye again because it's valid and then normally this is the price action that you're getting okay, so that is a descending triangle in a continuation form continuation descending triangle, okay so now real quick just to show you we also can have this in a Reversal all right so you're making higher highs higher lows higher highs higher lows pick a high You hit this level make a lower high? Samwol And then from there alright Okay, so you run up in price you hit a high? You can't find it more buyers. You break down There's a bio wall here protecting. You know the price from falling to lower prices You come back up and make a lower high do the same thing over and over and then from there the reversal okay, so Now we're gonna look at a real world example of a descending triangle how to trade it Are we looking at icx to Bitcoin finance exchange one-hour chart? Looking for a descending triangle Do we get find one? – Reaction highs Multiple reaction lows You can see the development that downward sloping trendline That would can eventually converge into What we're looking for you know our Pretty much straight line so what happened when we started forming that All right just keep going down like that keep can't they keep this going right then from there.

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We broke out This Never there we broke down to continue going down Its it descending triangle after an uptrend Signifies a reversal. Okay, so you can see it here. It didn't last very long but these Normally, they go about 50 percent of the way 75 percent before they break to the downside so Two reaction eyes multiple reaction lows, and how would you trade this if you were going short? These are normally shorting tools right so you would First off. Let's get the measure move.

How far should this go on the breakout widest area of the triangle. It's about 400 satoshis Okay, well we broke out 400 satoshis that's the measure move down here Go right there right around there Here's our targets Okay there we are So uh look what we did get the measure move perfectly bounced off – how how insane is that so uh? Look you can have these and up trends or downtrends. They're always normally They always normally have a bearish hue to them so So yeah we we hit targets That's normally where you'd short at the top of these right if you you know normally this we'd like that one more Try this one more Lower high would be ideal in this situation if you were wanting to go short on this You go short at the top is your best risk reward from there. You have all this area.

You could break down Knowing the context of a descending triangle we have all this area We could break down and then break to make the measure move and make a ton of money on this trade with a short So ascending triangle nice buying opportunities to the bottom Descending triangles great opportunities short at the top, so that's it guess so now we're going to Pretty much plot a hypothetical symmetrical triangle and talk about what kind of price action goes on and really everything behind it, so All right, so let's just say for instance On the symmetrical triangle you're making higher highs higher lows whatever, but then you make a much higher high You know much lower low from your previous high Make a lower high then a higher low and another Lower high then another lower low Okay How we plot this breezy? From the bottom Just like that so this is our symmetrical triangle at its heart it is a mmm neutral pattern that you must be very careful of Normally the way, you can look at it, but you have to have confirmation Don't assume on these things do not assume they can easily make a fool out of you. I've seen These symmetrical triangles break to the upside down surround Then you think maybe you're going to the upside and then it breaks down all right so get confirmation on these uh these symmetrical triangle because they can be tricky so but they they're pretty much just price contraction you have a two consecutive Higher lows and then two consecutive lower highs and It's just your coiling up getting ready to make a move that price contractions very real And it's that's why it's neutral because it's equal on both sides and so with that normally after an uptrend it can signify a Bullish symmetrical continuation pattern, but it can just as easily be used as a Bearish symmetrical triangle reversal pattern after an uptrend so you have to be careful and always get that confirmation on these breaks So could do that Or it could just of course be the bullish continuation like we talked about right and it's the same thing with From the downtrend right don't want to get too redundant for you All right, but you need this price you make a consecutive lower highs and consecutive higher lows right then from there it can either be you can come out here like this bounce off for a while and Then break to the upside Head fake right or it can do the same thing where I can break to the upside like this bounce around for a while loops and then break down right so you can get Either or here so again wait for confirmation on these they can be way more tricky than the ascending triangle and a descending triangle Okay, so now let's get into a real world and learn how to trade these things alright, so now we're gonna be looking for a Symmetrical triangle looking at BTS. It's a Bitcoin Okay one-hour chart, and I think we can see one right? We have our high up here first fraction. I second reaction I third reaction hi then Price contraction with a reaction low here second third fourth multiple reaction lows here Okay, so you can clearly see the prices the rate of change is getting smaller and smaller, okay? Getting ready to make a move to the upside or downside and let's see what happens And it was after remember it was after an uptrend so as we discussed and the hypothetical Has a bullish hue to it right.

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There's a possibility this could be a bullish symmetrical triangle continuation pattern right tom plays out And there you have it Call with the upside there kiss so we just connect these up real quick Very recent pattern Bitcoin I. Had a lot of volatility caused us to come back and spike spike off this stopped out a bunch of people hmm interesting stuff, but Alright, so with this. How do you trade these pretty simple? Get your measuring tool the widest areas of the triangle of course 294 Satoshi's from the breakout or with wherever that was 294 of course it went much higher, but this is to give you a Russ or a rough estimate, and it's a Simple Form there are other ways of getting profit, and we're gonna make videos about that too, okay This is just your measure move if you want to make profit. You're new at this.

This is the way to do it, okay, so when we hit this level Course moved up a little bit more and we broke down below You know if you exit the trade or whatever you make your money We break down you want to worry about this kind of stuff of course. We kept going because this was Different there's not we're not looking at the context of the coin going through a possible all corn spring right now, okay? But for the sake of this video How do you trade these well the absolute best area to trade symmetrical triangle if you're bullish? Right here right at the you start finding support you had plenty of area plenty of time To buy at the bottom, okay? We have a bullish hint of the symmetrical triangle, so taking the lowest risk would be at the bottom of the upward sloping trendline and so Pretty much from there the rule of thumb would just to be having your stop-loss a little bit lower than your previous lows Which we're here, so you could have a pretty tough tight stop-loss it moves up Okay anything happens See right here. This is this wick right here. We didn't get stopped out of the session a patreon Trade let's get our risk to reward real quick Right here all right here You said her stop something right there so Very very close to getting stopped out, but this is why you have to Be as loose as you can on your stop-loss Don't be crazy, but I got people got so close to getting stopped out right there That's insane so you should be mindful about your stop losses be you can be a little bit more liberal a little loose But people could have gotten stopped out right here, and then it just broke to the outside hit target, so from there the best opportunities always lie here and of course Your targets gonna be here your risk to reward ratio is gonna be eighteen point two five to one and that Literally played out for us.

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This is literally a trade. We made like three to four days ago, so Alright, so that's a those are your three triangles, so you know we talked about the beginning of the video What you know what our goals were going to be for this video? It was gonna be being able to identify a triangle whichever one it was Being able to plot it and then Knowing how to trade the triangle, okay, so I hope you enjoyed this video Grounded trading session on triangles enjoyed it hit that like button that bell that sub You want to learn how to be a better trader chew on our patreon page? It's in our description below and check out our youtube Hype a youtube live page where we go live every day 3:00 Eastern and 11:00 p.M.. Eastern So until next time Stay hyped You You.

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