Triangle
Converging swing boundaries that compress price into a narrower area.
What to look for
- At least two validated contacts on each relevant boundary
- Range width contracts
- Ascending, descending or symmetrical type is declared
Alternating swing highs and lows tighten between two lines drawn in advance. The final candle closes above the upper line; a wick through it would not count here.
For a downside break, wait for a close below the lower line. Ascending and descending triangles use different line shapes, so study them separately.When the pattern is confirmed
A close outside the boundary plus a minimum range or volatility condition.
Where the idea is wrong
A close back through the breakout area or opposite structure.
The easy mistake
Trendlines can be redrawn until they fit and late breaks can run out of space.
A complete triangle example
Show at least two validated contacts on each relevant boundary and a measurable contraction in width. Freeze the lines before the breakout candle and label ascending, descending or symmetrical geometry.
First rule to test
Breakout close — enter no earlier than a candle close beyond the frozen boundary by the chosen ATR fraction.
Alternative rule
Boundary retest — after a valid breakout close, wait for price to revisit and hold the broken line before entering.
Place it where the pattern is wrong
Place the example stop one fixed ATR fraction beyond the last completed internal swing on the opposite side of the breakout.
Context, trigger and risk
The pattern handles timing. The other tools decide whether the location makes sense and how far normal price movement can reach.
Measures contraction, breakout size and the stop buffer.
Adds a separate volatility-compression measure.
Supplies an independently defined trend direction for continuation tests.
First exit to test
Pattern width — project the triangle's widest frozen width from the breakout point.
Alternative exit
Trailing swing — remain in the example until price closes beyond the latest completed swing against the breakout.
Patterns need a method around them
Open a related strategy to see the wider market filter, entry, stop, exit and no-trade rule.
Donchian breakout
A rules-first breakout framework based on new lookback extremes.
- ENTRY
- Enter at the next H4 open after a completed close above the prior 20-bar upper channel for a long or below the lower channel for a short.
- STOP
- Initial stop is 2.0 × ATR(20) from the actual fill. Size to risk 0.50% of equity, rounded down to 0.01 lot; never add to or widen the position.
- EXIT
- Exit at the next H4 open after a completed close through the opposite 10-bar channel. The initial 2 ATR stop remains active until that exit.
Bollinger squeeze
Tests whether unusually narrow bands precede a tradable volatility expansion.
- ENTRY
- Enter at the next H1 open in the direction of the first eligible release close.
- STOP
- Place stop at the opposite side of the frozen six-bar range. Risk 0.50% equity, rounded down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit at market after 16 completed H1 bars if unresolved.
Multi-timeframe continuation
Aligns a higher-timeframe state with a lower-timeframe trigger without peeking into unfinished bars.
- ENTRY
- Enter at the next M15 open after a candle closes back across EMA(20) in the H4 direction and beyond the prior M15 candle high/low.
- STOP
- Place stop 0.25 × M15 ATR(14) beyond the pullback extreme; risk 0.35% of equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit early only when a completed M15 candle closes through the stop-side pullback extreme; close unresolved trades after 24 M15 bars.
Try it on older charts
Freeze pivot and line-fitting rules; include both breakout directions.