Indices Triangle Break Out Stock Chart Pattern

With Indices Triangle Break Out Chart Setup the stock market price breakout can move in any direction.

Triangle Stock Chart Setups

Symmetrical triangles are chart patterns with converging trend lines that form a consolidation period of the price. The technical analysis buy signal from a symmetrical triangle is the upside price breakout, while a downside price break out is a technical sell signal. Ideally the market breaks out from a triangle chart pattern - symmetrical triangle prior to reaching the apex of the triangle.

Trendlines can be plotted connecting the lows and highs of the triangle chart pattern phase, the trend lines formed are symmetric and converge to form an apex -indices triangle pattern -indices triangle pattern. A Indices Triangle Break Out should occur somewhere between 60-80% into the triangle pattern. An early or late Indices Triangle Break Out is more prone to whipsaw signals, and therefore less reliable. After a price break out the apex of the triangle forms support and resistance levels for the price. price which has broken out of the apex should not retrace past apex of the triangle chart pattern. The apex of the triangle pattern is used as a stop loss order setting area for the open stock trades.

When these triangle chart patterns form we say that the market trend is taking a break before deciding the next direction to move.

These triangle chart patterns form when there is a tug of war between the buyers & the sellers & the market can't decide which way to continue.

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However, this triangle chart pattern cannot go on forever & just like in a tug of war one side eventually wins, looking at the chart below see how the triangle eventually had a breakout and moved in one direction - Indices Triangle Break Out Chart Pattern. Now how do you make sure you select winning side?

Indices Triangle Break Out Indicator MT4 - Triangle Indicator Stock Indices - Indices Triangle Indicator MT4 - Indices Triangle Chart Pattern Trading

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Now back to our index question, how do we as traders ensure that we are on the winning side of trade?

Well we wait until the price moves past one of the trendlines of the triangle pattern and put buy orders or sell orders in that direction. If price breaks the upper triangle line we buy, if it stock price breaks the lower triangle line we sell.

Alternatively if you do not want to wait for a triangle indices break out - you can use indices ending orders.