1. Using Triangles- in Technical
Analysis
By
Sangamesh.K.S

2. Index
• What are triangles & why they are formed?
• Types of Triangles
• How to trade triangles?
• Placing Stop-Loss
• Strategies for trading triangles
• set price targets for triangles
• EWT’s perspective of triangles
• Using indicators & triangles
• Do patterns really work?
• Sleeping Triangles (An research and findings)

3. What are Triangles?
Triangles are the patterns formed when upper
and lower price level collide (converging trend
lines) at a single point called Apex/cardle.

4. Facts about triangles
• Triangles can be best described as horizontal
trading patterns.
• As the market continues to trade in a sideways
pattern, the range of trading narrows, and the
point of the triangle is formed.
• The triangle shows losing interest in an issue,
both from the buy side as well as the sell side:
the supply line (support) diminishes to meet the
demand.

5. Contd.
• They have a tendency to repeat again and
again.
• Triangles indicates its direction before it give
you a breakout.

6. Nature of Triangle
• They consist of
 Trend Line
 Major Support/ Resistance
• Volumes will be low before breakout; Volumes
kick high after breakout.
• Triangle speak its direction (Bullish/Bearish)
• Price never touch the cardle/Apex.

7. When they are formed?
• After a impulse wave; Triangles are corrective
wave(As per wave)
• When market start to move sideways.
• Range bound Market; Triangles are
anticipation of breaking S/R

8. Continuation Vs Reversal
• As per pattern it is Continuation
• As per EWT it is Reversal.

9. Types of Triangles
• Ascending triangle
• Descending triangle
• Symmetrical triangle
– Others

10. Triangles and parts of Triangles

11. Trading Ascending Triangle

13. An example where
an Ascending
triangle failed to
give a bullish
breakout!!!

14. Trading Descending Triangle

17. Trading Symmetrical Triangle

19. Expanding Triangles
• These Expanding triangles are the
inverse(mirror image) of Regular Triangles
• The volume in the expanding triangles
increase
• Hear trading within the triangle can be
profitable.

21. Indicators and You
• MACD
• RSI
• ADX etc
• “It isn’t important which indicator is the best;
but you need to know your indicator”
• Tips: Keep an oscillator indicator and a moving
average indicator. And keep experimenting to
know more.

22. Stop-Loss
• 2% or 5% Stop Loss
• ATR
• Pivot points
And More
• Fib Levels
• Neckline
• Trend line
Before placing your stops. Keep an eye on “Risk” and “Volatility”

23. Premature Breakouts
• They are the violation of Support/Resistance
and Trend-line.
• They stand as a road map for traders.

24. What we can understand from a with
Premature breakouts?
– We can predict the breakout( Bullish/ Bearish)
• TIP: Stay away from the stock if the stock is showing
violation in both upper and lower levels. Look for
breakout for trading; They are the only reliable source

25. Triangles repeat again and again

26. Measuring Triangle
There are 2 techniques adopted to measure the
targets for triangle
• Parallel trend-line method
• Fibonacci Method

27. Elliott Wave Theory
It consist of
• Impulse wave
• Corrective wave
 Zig-zag Correction
 Flat Correction

28. Zig-Zag Correction

29. Flat Correction

30. EWT’s Perspective

31. What we learn from Elliott’s wave?

32. Do Patterns Work?
Yes, Patterns work
Really?
NO

33. Why we think in Patterns?
• Your pattern is based on our decision
• Your decision is based on your thinking
• Your thinking is based on your recognition.

34. Sleeping Triangle