Easy Forex System To Make Money
Triangle Patterns – A Simple System For Making Money
Another situation in which you could expect a breakout is the symmetrical triangle. In this pattern, ( an easy forex system to make money), a line drawn below the lowest lows has an upward slope but a line drawn above the highest highs has a downward slope. The two lines converge so that if continued, they would form a triangle. This type of movement is called price consolidation.
In this situation, neither the buyers nor the sellers are pushing the price far enough to make a clear trend. The prices are converging and if this continued, eventually there would be no price movement at all.
But it is not possible for prices to stop moving. So when this pattern occurs, it is a strong sign that a breakout is approaching. Either the buyers or the sellers will push the price their way. We cannot tell for sure which way the price will go. The fact the the upper line is a little flatter could be an indication that it will rise, but fortunately, we do not have to be sure. We can place entry orders on both sides to take advantage of whichever move the price makes.
Try This For Yourself
This is something you can do right now in your demo account.
Watch for this type of triangle pattern forming. When it does, place a buy order a little above the top line and a sell order a little below the bottom line. As soon as one of those orders is triggered, you should cancel the other, and hopefully you will be on a winning trend.
Here’s our example after a few more periods. As you see, the price broke out on an upward burst. Our buy order would have been triggered and we would have made a nice profit.
But note that if you were trading with a real account it would not be wise to act on the chart alone. You would seek confirmation from other indicators before placing an order.
Next Page: Other Indicators To Open A Forex Trade