Today I’m going to help you win more trades using triangles.
This message is not sponsored by the Illuminati. Triangles are just great price action patterns for breakouts.
I’m pat. And today I’m going to teach you a simple price action breakout strategy that’s going to make you a better trader and I’ll show you my live trades using this strategy, putting my money where my mouth is.
Forex Price Action Strategy
All right. So let me teach you my Forex price action trading strategy and make sure that you stay to the end of the video, because I will give you a free code that may help you get free access to my VIP group. So stick around for that, but now let me show you this Forex strategy. Let me make you a better Forex trader.
So the first thing you want to do for this strategy is come to www.tradingview.com and then click indicators, click on the moving average indicator, click on the relative strength indicator. Once we have those two best Forex indicators, we are ready to modify them. So just double click on the moving average, click inputs, and set the length to 200 days, I’m using this for trend direction. I want to be trading buys, If the price is above here, and I want to be trading sales if the price is below that line, as you can see.
Then we have the RSI. This is my second confirmation. I want to be trading sell trades, If we are below the 50 line, which is this line right there. If you want, you can change this line, make it yellow, the middle band and thicker. If that helps you spot that confirmation. So you can see here right here, we are below the 50 line. So we’re looking for sell trades, over here we are above the 50 line looking for buy trades. Okay. That’s very simple, but the main aspect of this strategy is price action patterns. And the pattern we’re focused on is the triangle.
Trading Example (Triangle Pattern)
So let me show you a quick example right here. Let me just draw a triangle right here, based on these current prices of the Euro. So this is a triangle pattern right here. You can see the price consolidates within this range, and then as soon as it breaks through this pattern, then we have a sell trade. So at that point I would put my short position right here and I would smash the take profit. This would’ve been a very good trade and I would set my stop loss based on a recent high. So I’d set it somewhere based on this or based on this. So that’s how you would adjust it. So it’s actually in a pretty good spot, maybe somewhere around there. And for my take profit, I would be using a recent low rate here. You could see that line. And so the take profit’s actually at a really good spot as well.
So this is an example trade. This is what I would be doing. Now, let me get into the live trades where I trade real money, real examples. So you can use this Forex strategy on your account and win more trades. Let’s go.
Time to get into the fun stuff and show you some actual live trades. A lot of other people, they just want to show you back tests. I show live trade. So you know exactly what I’m thinking when I’m using a trading strategy like this triangle price action Forex strategy I’m going to show you right now.
Live Trade #1
Okay, So for my first trade, this was a great Britain pound, sell trade You can see, I have the wed drawn on the chart. Now, before we get into it, just take a look and see what happened with the trade by playing it. You can see the trade quickly hits the take profit right here, and this is a great win. It’s a risk reward ratio of about 0.89. I get about 50 pips on this. This is $752. It’s an excellent win. You can see why I’m doing this. Okay, let’s get it into the actual strategy. Why did I do this? I have my wedge drawn. You can see that we have the moving average here. The blue line, the price is below the moving average. It’s actually in line with the wedge that I drew with this triangle that I drew, which is a good sign.
Then the second confirmation we had the RSI. Right here the RSI is below the 50 line. So we are looking for a sell trade. The moving average again, I mentioned we are, the price is below that. So we’re looking for a sell trade. Then we drew our wedge. You can see here, this is the drawing of the wedge right here. And at this point it actually breaks through the wedge. So that’s when I’m looking for the breakout trade opportunity. I have my stop loss set right here because of this previous level. And I have my take profit set here because of this previous level right here.
Obviously I went a bit shorter than the wick, which is fine. Obviously it worked out very, very well. As I made nearly $900 on this trade. It was an excellent trade and this is the power of wedges and triangles. They can really provide you with breakout opportunities as soon as the price breaks through that market structure, let’s move into trade number two and see exactly what happened.
Live Trade #2
For my second trade, You can see exactly what happened right here. Let me just hit the play button and show you the trade. So we actually ticked this win right here, but it didn’t actually trade, right? I guess there was a spread of a couple of pips when I opened up this trade. So I would’ve had to hit this red line here in order to win this trade. So what actually happened is the breakout worked. It broke out in my direction, but then when it slammed down here, it actually hit my stop loss because of these spreads. So this was a bad trade. I ended up losing $890 on a live account with this trade. Now let’s break down why that happened.
You can see I made a mistake, right? I had a nice breakout here, right? We had the triangle. This was good. This part of the analysis was fine, but I’m using multiple confirmations, right? We had the RSI, this was above 50. This is good. But the main confirmation for trend direction, which is my 200 day moving average, this is actually above the price rate here. So when that is the case, we want to be using sell trades. And I actually did a buy trade. So even though I feel like I should have deserved this and I got to yell at my broker because of this area right here, I really shouldn’t have took this trade. This is a mistake that I made. And sometimes that happens in live trades. You know, if I’m just showing you back test, you’re going to say, oh, this guy wins every single trade. Everything he does is perfect. Guess what? I’ve been trading for 13 years. I still make mistakes too. Let’s get into trade Number three. Hopefully I get this win back.
Live Trade #3
All right, this is my third trade. This is a US dollar Swiss Franc sell trade. You can see here, I have the descending triangle. And now let’s just go ahead and take a look and see what happened with this trade. This was a very good trade. You can see here, I smashed my take profit. I made $1,333 on this trade, which is exactly what you want to see when using this triangle price action Forex trading strategy. Yes, that’s absolutely a mouthful, but you have to deal with it.
So look right here, we have a descending triangle. The price stays within the triangle consolidates and eventually breaks through the triangle. So this is where I provide my trade opportunity. And this is how I get my win. For my other confirmations, You know, the RSI has to be below 50. It clearly is below 50, right here and the moving average, The mistake I made on the last trade, I didn’t make, I wanted the trade with the trend. So I traded with the price below the moving average, which you can see right here. And that is why I won this trade. When you’re using a system or a strategy, it’s important that you stick to the fundamentals of that strategy. You can see even myself, I make mistakes from time to time, but I bounce back and I got better. Because by the time I got to the third trade, I was making sure that I was using all of the rules. And if I kept using this strategy, I imagine it would’ve worked even well.
Now I didn’t tell you, but the timeframe for this strategy is H1, make sure you know that. Now let’s get into the wrap up. Maybe I’ll give you a code for some free VIP access. Let’s go ahead and see.
Wrapping it all UP
I know you want to see me win 10,000 or $20,000 every single week with every single strategy I provide, but live trading sadly isn’t that easy. This week I placed three trades. I won two. I lost one. I feel like I should have won all three, but the gold trade. Hey, spreads a bitch. What can I say? If you didn’t watch that trade, go back and watch it right now. You’ll see I made a mistake and that’s part of live trading too, but I made nearly $1,200. And every time you end the week positive, you have to be happy. It’s good to have that attitude when it comes to trading because not every week is going to be a good week. This week was really tough. We had the new COVID variant that made the markets choppy, and I love trending conditions. And we were just really having a hard time finding those trends.
Now it’s your turn to try this strategy, leave a comment below telling me your results, So I know if you like this type of content and the type of video you want to see me do next. And if you got this far in the video, the secret code is triangle. So follow me on Instagram and DM me the secret code for your access to my VIP group. I will be giving 10 random people access to the VIP group for a week or two, depending on how many responses I get to this video. So get that VIP access. I won over 23% last month. It was absolutely insane. I’m not saying I’m going to do that every month, but I’m hoping that I do moving forward.
So thanks for watching guys subscribe to the channel, like the video, leave a comment. And if you like this video, I actually picked out two more videos for you. You’ll definitely love that video. And you’ll definitely love that video right there. So go ahead. Watch these videos. Let me know what you think about the channel. I love you. I’m out of here, later.