I don't trade triangles (I have my own techniques) but I'm always interested in hearing/reading about your techniques. Could you please tell us about a very current one like DIA or AMZN and where the triangles began forming.
I have my own ideas on the where/when but it would be nice to know what your triangle tool is identifying.
Hi Allen. For me the most important is not where a potential triangle started to form. It is where consolidation and coiling confirms. A standard ADX is my go to for this. I become interested when it is below 14 and the potential triangle is close to an apex. In the case of DIA on the daily, it is in a good spot for a breakout (up or down). Here is the daily chart - just an opinion... https://www.screencast.com/t/tg931xhYJoSR A bullish entry point would be a break above the blue line with targets 1 and 2 at previous pivot highs, which coincidentally also match the 61.8% and 100% fib extension from the BCD zigzag. BUT... this could break to the lower side as well, a reversal at C could transform this to a more clear ascending triangle. Given the low ADX, DIA looks like it wants to make a move in one direction or the other... We shall see.
Michael,
I don't trade triangles (I have my own techniques) but I'm always interested in hearing/reading about your techniques. Could you please tell us about a very current one like DIA or AMZN and where the triangles began forming.
I have my own ideas on the where/when but it would be nice to know what your triangle tool is identifying.
Thanks! ARF
Hi Allen. For me the most important is not where a potential triangle started to form. It is where consolidation and coiling confirms. A standard ADX is my go to for this. I become interested when it is below 14 and the potential triangle is close to an apex. In the case of DIA on the daily, it is in a good spot for a breakout (up or down). Here is the daily chart - just an opinion... https://www.screencast.com/t/tg931xhYJoSR A bullish entry point would be a break above the blue line with targets 1 and 2 at previous pivot highs, which coincidentally also match the 61.8% and 100% fib extension from the BCD zigzag. BUT... this could break to the lower side as well, a reversal at C could transform this to a more clear ascending triangle. Given the low ADX, DIA looks like it wants to make a move in one direction or the other... We shall see.
Thanks Michael. I appreciate you posting this image/url.
Your A B C & D points are where I entered some of my directional trades.
Best wishes!
You are the Grand Master!!