Descending Triangle Breakouts - My World
- Thread starter Dutchy3
- Start date
- Status
- Joined
- 21 April 2005
- Posts
- 3,922
- Reactions
- 5
RichKid
PlanYourTrade > TradeYourPlan
- Joined
- 18 June 2004
- Posts
- 3,031
- Reactions
- 5
Nice to have you back Dutchy, the main point is that you're still in the game AND able to admit that YOU (rather than the market) took a wrong turn somewhere. The longer you survive the more experience you will have. Add sound judgment to that and you will be well ahead. So congratulations on surviving!
From an educational and trade management perspective I'd be interested in any critiques you may have of your experience- was a 30% loss of trading capital a foreseen drawdown for your method? or did you make some mistakes (eg not following a stop loss/profit stop or trading charts which didn't satisfy your entry criteria)? Might be worthy of another thread if it's not related to your methodology as outlined previously in this thread by you.
fwiw my biggest mistakes stem from poor position sizing (positions too large in relation the instrument's risk/volatility profile) and not following stop losses- in that order. Thought I'd share a few thoughts in support as a fellow trader, I'm no trading expert by any measure (but hope to be!).
RichKid
PlanYourTrade > TradeYourPlan
- Joined
- 18 June 2004
- Posts
- 3,031
- Reactions
- 5
Hi baboon, Welcome to ASF!
Nice to see you getting involved in this thread.
We do have a dedicated section here on ASF to help with admin and generic issues like posting and editing charts- see the ASF Announcements Forum which has a thread on how to post a chart.
Good luck!
RichKid
Moderator
MKY probably quite doesn't qualify yet due to no real support base although one looks to be forming at 3.5c, has a bit more work to do yet imo, but 1 to watch I think.
WMT is probably abit closer and has a more "solid base", another one to watch.
Attachments
Hi RichKid
Actually the drawdown and sideline caused me to re-examine all aspects of my trading plan. I should now disown this thread as I no longer use this method ...
Decending Triangle breakouts, although occassionally quite spectacular, are not high enough on my probability curve to make trading profits. On a weekly chart I do find them at the base of trends that end up been signal points for new weekly trends ... but the time wait can be crippling ...
I'll post a new thread soon once I have enough actually trades under my belt to give some examples, both historical and real time.
Actually the drawdown and sideline caused me to re-examine all aspects of my trading plan. I should now disown this thread as I no longer use this method ...
Decending Triangle breakouts, although occassionally quite spectacular, are not high enough on my probability curve to make trading profits. On a weekly chart I do find them at the base of trends that end up been signal points for new weekly trends ... but the time wait can be crippling ...
I'll post a new thread soon once I have enough actually trades under my belt to give some examples, both historical and real time.
According to the text books (none in particular) are descending triangles not meant to be monitored for a break down through support? I think any triangle is worth watching because you are watching a pattern/trend that can not continue, you can see when something has to give be it support or resistance.
- Joined
- 8 November 2006
- Posts
- 82
- Reactions
- 0
RIV appears to be forming a descending triangle pattern between $9 and $11.25. (Difference of $2.25)
Support is around $9.00. Breakout would be around the $9.75-$10 range with an upside target of around $12, ($9.75 + $2.25).
Also to note is the head and shoulder pattern, IF we breakdown through $9 then we could be looking for a target of $6.75, ($9 - $2.25).
Trading for Friday was positive, in the sense that $9 was tested early in the day and then buyers came in and bought the stock up to close at $9.40.
I hold, so fingers crossed the breakout will be upwards.
Cheers
Peakey
Support is around $9.00. Breakout would be around the $9.75-$10 range with an upside target of around $12, ($9.75 + $2.25).
Also to note is the head and shoulder pattern, IF we breakdown through $9 then we could be looking for a target of $6.75, ($9 - $2.25).
Trading for Friday was positive, in the sense that $9 was tested early in the day and then buyers came in and bought the stock up to close at $9.40.
I hold, so fingers crossed the breakout will be upwards.
Cheers
Peakey
Attachments
- Joined
- 27 September 2007
- Posts
- 406
- Reactions
- 1
- Joined
- 4 February 2006
- Posts
- 564
- Reactions
- 0
RIV appears to be forming a descending triangle pattern between $9 and $11.25. (Difference of $2.25)
Support is around $9.00. Breakout would be around the $9.75-$10 range with an upside target of around $12, ($9.75 + $2.25).
Also to note is the head and shoulder pattern, IF we breakdown through $9 then we could be looking for a target of $6.75, ($9 - $2.25).
Trading for Friday was positive, in the sense that $9 was tested early in the day and then buyers came in and bought the stock up to close at $9.40.
I hold, so fingers crossed the breakout will be upwards.
Cheers
Peakey
watch this one like a hawk peaky - classic head and shoulders formation there which will have the chartists shorting it like there's no tomorrow if it drops below $9
- Joined
- 27 September 2007
- Posts
- 406
- Reactions
- 1
- Joined
- 1 April 2007
- Posts
- 338
- Reactions
- 1
I was reading the start of the thread thinking to myself "arent descending triangles usually the sign of a breakdown"..........
Then I read the last page and see the trading strategy has been revised........
Interesting to see so many adopting the method (at least taking it into good consideration). How long were you SUCCESSFULLY using descending triangle breakouts for Dutchy (as in successful trial and error timeframe before you started this thread)?
Good to see you taking some initiative though and thinking outside the box.
Then I read the last page and see the trading strategy has been revised........
Interesting to see so many adopting the method (at least taking it into good consideration). How long were you SUCCESSFULLY using descending triangle breakouts for Dutchy (as in successful trial and error timeframe before you started this thread)?
Good to see you taking some initiative though and thinking outside the box.
RichKid
PlanYourTrade > TradeYourPlan
- Joined
- 18 June 2004
- Posts
- 3,031
- Reactions
- 5
As this thread has now strayed beyond its original parameters it will now be closed. Refer to Dutchy3's final post above and the first two pages for an outline of the method.
Some posters have merely posted descending triangles rather than those which fit all of Dutchy3's criteria. If you would like to track descending triangles on an ad hoc basis then please feel free to start a new thread....or if you find a descending triangle in a particular stock you may choose to post in the respective thread for that stock.
Thank you for sharing your trading experiences here Dutchy3, we look forward discussing your 'new, improved' method! Good Luck!!
- Status
