We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
  • The gold-silver ratio is simple. It is the number of silver ounces you would need to trade to receive one ounce of #gold at current market prices. Find out how you can use this in your trading strategy here:https://t.co/kh5DZvv5ib $XAUUSD https://t.co/eJGODpfTNc
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
Triangle of Trade

Triangle of Trade

2011-04-06 17:27:00
Walker England, Trading Coach,
Share:

Triangle patterns can offer us frequent and easily identifiable trend based trading opportunities if we keep an eye out for them. Today a descending triangle is forming on the USD.DKK (Dollar/Danish Krone) currency pair on the daily chart. These formations are normally seen as continuation patterns and form when at least two descending highs form a trend line.

It is also critical that there is a minimum of two lows established at the bottom of the triangle. These low points will link together and a horizontal line of support. The two lows do not have to be exact, however if there is not a bounce in price we can quickly find ourselves in a breakout environment.

Triangle of Trade

Price Action

Taking price in to a 4hr chart, we can find a solid down trend in place dating back to the February 14th high of 5.5520. If our triangle pattern is correct we would need to see a break in price action above the current 4hr trend line and head to the top of the triangle, (long term resistance) denoted by the red line on the chart below. Our CCI indicator is currently in oversold territory below -100 and a cross above this level can be used for confirmation of price returning to resistance.

Triangle of Trade

Trading Opportunity

Our descending triangle being a bearish continuation pattern should get us looking for short trades with the direction of the trend. My preference is to use a series of entry orders along our upper trend line near the 5.5000 handle. Stops should be set above our trend line and limits can be set at the bottom of our triangle near 5.2500 giving us a greater than 1:2 Risk-Reward setting for the trade.

An alternate approach can also be taken if price breaks lower through support. We can use a breakout strategy and enter a break below 5.2000 and place stops over old support (now resistance) at 5.2500.

Next: Trading Price Action "Triangles" (20 of 47)

Previous: Trading the Bullish Morning Star

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.