What is Forex Triangle Trading? Forex trading strategy

Forex Triangle Trading is a trading method that is actually a combination of three different Forex trading systems. It capitalizes on the primary strength and eliminates the primary weakness of both a Volatility Breakout and a Trend Following trading system and uses a recurring Cyclical tendency to improve our timing. The success of this method is based on the trader’s ability to recognize and act on a recurring triangle pattern in all markets that oftenprecedes a market trend.

Forex Triangle Trading.

This method also eliminates one of the major hurdles of Futures trading and that is picking the markets direction. The trader need only determine that a significant Forex trending move is about to occur in one direction or the other. This manual will show you how to determine this and also how to capitalizeon it.

One requirement is that you have access to daily charts of the most common and actively traded Futures contracts. The trader must analyze his or her charts on a daily basis looking for a particular pattern called a symmetrical triangle pattern, which I will define, in a later section. After the pattern is visually recognized, rules are applied to determine if in fact the formation is valid. Applying rules to our trading eliminates a lot of the subjectivity commonly associated with chart based trading strategy and enforces discipline.

I have also included charts that represent actual examples of triangle formations that have recently occurred in the markets. Don’t trade with real money until you feel comfortable that you understand the principles involved with trading this method. The author assumes you have some trading experience and are familiar with intricacies of the different order types thus they will not be explained. After all, you pay your broker a commission for his assistance and I recommend using a full-service broker for the first 18 months of trading.

For those of you who like to get right to the point, the chart below shows an example of the Triangle Trading method. The rules that define how this trade was selected and implemente dare described in this manual. We will also discuss the most important and overlooked aspect of futures trading, the exit Forex strategy.

Forex Triangle Trading Example.

What is Forex Triangle Trading? Forex trading strategy. Triangle pattern.

Forex Trading Strategy.

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