Ascending Triangles

[Dogpile 10]

I find Ascending Triangles to be a fantastic pattern for swing trading. This thread is to keep a journal of some of these and hopefully others can find some good ones that I don't.

 

Idea is to play the short-term 'momentum off opening price' with intraday risk of maybe -2% stop loss with an upside of 5-10% if the intraday momentum leads to daily momentum (ie, the daily chart 'kicks in').

[Trvlwanderer 10]

Good start. I'll have a couple later.

[aiki14 10]

I find Ascending Triangles to be a fantastic pattern for swing trading. This thread is to keep a journal of some of these and hopefully others can find some good ones that I don't.

 

Idea is to play the short-term 'momentum off opening price' with intraday risk of maybe -2% stop loss with an upside of 5-10% if the intraday momentum leads to daily momentum (ie, the daily chart 'kicks in').

 

No reason to limit it to ascending, a descending triangle is as good for a short as an ascending is for a long.

[Trvlwanderer 10]

 

[TinGull 10]

 

[Nick1984 10]

No reason to limit it to ascending, a descending triangle is as good for a short as an ascending is for a long.

 

Thats true only if you've got a broker which will allow you to short that particular stock!

 

The triangle formation is a very usefull pattern in swing trading. The safest method is playing the breakout of the base straight away, on a candlestick, or getting in at any retracements. They are usually pretty high probability trades. I'll try dig up some charts!

 

On stocks however, you do need to be carefull with company announcements and the correlation between price and announcements on that particular stock.

 

One of the stocks that I swing trade, Bannerman Resources (BMN on the ASX) has a habit of actually going down in price on good news. This has often caught out quite a few people who have been waiting for breakout on triangles.

[Nick1984 10]

Tin, I just noticed that first chart you have up. That's a wild movement to the upside on the last two barson some gigantic volume. What sparked that off?

 

In situations like those its pretty hard to get in on those trades because you're forever carefull of not chasing the market. 2 days of gap ups with strong solid candles with very wide bodies. That particular stock unless backed up by strong fundamental reasons may actually have overheated itself, and a retracement back down towards the base line of the triangle looks like it may be viable, especially as the volume on the second gap up seems to be 1/2 that of the break out.

[TinGull 10]

Exactly. It's a slow moving stock, so getting in isn't always too tricky, but I agree on waiting for a retracement. I never like getting in on the initial break, anyways.

[aiki14 10]

Hey TinGull, Can you post a chart of BQi, I think you'll see a tradable triangle there. And maybe a place for me to get a primer on posting charts. Thanks

[TinGull 10]

http://www.traderslaboratory.com/forums/f30/how-to-post-a-chart-properly-805.html

 

theres a thread on how to post a chart

 

If you still need me to get a bqi chart I can in a bit...

[aiki14 10]

http://www.traderslaboratory.com/forums/f30/how-to-post-a-chart-properly-805.html

 

theres a thread on how to post a chart

 

If you still need me to get a bqi chart I can in a bit...

 

Thanks I'll try it after market close, and see if my Mac can do it.

[TinGull 10]

You're mac can certainly do it if mine can

[aiki14 10]

You're mac can certainly do it if mine can

I believe that, but I am not particularly sanguine on just because you can do it that it follows I can. We'll see.

[Trvlwanderer 10]

How do I get the chart to post as opposed to the thumbnail? Thanks, Trvl

[TinGull 10]

On a Mac...you absolutely can That's why it's a Mac!! If you have Q's, just shoot me a PM

[Trvlwanderer 10]

nvm...found the link

[aiki14 10]

On a Mac...you absolutely can That's why it's a Mac!! If you have Q's, just shoot me a PM

 

Will do TG. Thanks.