Breakout Trading Strategy Using Triangle Pattern

Sometimes we feel that the foreign exchange market has no direction or where the market trend wants to move. In this situation we can assume that the market price is in sideways trend, in other words the trend has no certain direction. Even though we can stand back and try to analyze the trading chart to get some hints as to the next opportunity movement using a proper risk and reward ration system.

In this article I want to share about one of the most trading systems that we can do when the market is in sideways trend. We can analyze chart pattern in our trading platform. For instance, the triangle chart formation, this trading chart pattern is a trendless formation that lets downtrend and uptrend to get balance after a strong trend. Triangle chart pattern can occur when the bullish trend or bearish trend and the usually mean there is one more to go in the next trend direction. When we are using this pattern in our trading strategy we can take benefit to analyzing and do breakout trading just after this chart pattern breaks and gives certain target profits. You can draw trend line connecting highs and lows to make triangle pattern and wait until a breakout movement shows. Then the lines are not converging, so it is goo to keep away from the market. When you difficult to find lows and highs, you can use technical forex indicator like fractals indicator. This indicator can determine the lowest lows or highest high over a 5 candlestick bars.