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Deep Knowledge On Triangle Pattern

The document discusses various technical analysis continuation patterns including triangles and pole and flag patterns. It describes the different types of triangle patterns (symmetrical, ascending, descending) and provides guidelines for capturing momentum on breaks of triangles in Nifty and Bank Nifty. Pole and flag patterns are described as forming a pole trend followed by a flag consolidation, and can occur in uptrends or downtrends. Examples are given showing how to identify valid breakouts versus fakeouts, with criteria like price action near resistance and multiple tests of support/resistance. Entry, exit and profit targets are outlined.

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1K views

Deep Knowledge On Triangle Pattern

The document discusses various technical analysis continuation patterns including triangles and pole and flag patterns. It describes the different types of triangle patterns (symmetrical, ascending, descending) and provides guidelines for capturing momentum on breaks of triangles in Nifty and Bank Nifty. Pole and flag patterns are described as forming a pole trend followed by a flag consolidation, and can occur in uptrends or downtrends. Examples are given showing how to identify valid breakouts versus fakeouts, with criteria like price action near resistance and multiple tests of support/resistance. Entry, exit and profit targets are outlined.

Uploaded by

BIG BILLION DREAMS
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Triangle Pattern

What is Triangle Pattern:


In technical analysis, a triangle is a continuation pattern on a chart that forms a
triangle-like shape.

Different types of Triangle Pattern:


 Symmetrical Triangle Pattern
 Ascending Triangle Pattern
 Descending Triangle Pattern
Points to capture in triangle breakout/breakdown in momentum:
1. For NIFTY you can capture 10-15 point in momentum.
2. For BANK NIFTY you can capture 40-50 point in momentum.

Pole and Flag Pattern:


It’s similar like real flag and pole structure. It is most profitable pattern that trader use in
most of the cases to catch a big upside and downside move.
The pole is formed by a line which represents the primary trend means uptrend or
downtrend
Flag is formed when there is a minor profit booking in either an uptrend or a downtrend

Different types of POLE AND FLAG PATTERN:


 It can be created in uptrend – that time we will trade for breakout
 It can be created in downtrend- that time we will trade for breakdown

Points to capture in Stocks for POLE AND FLAG PATTERN:


Calculate the POLE candle point and you have to take the same point in upper
Side.
1. Symmetrical Triangle Pattern
 Formation in Uptrend- BREAKOUT
 Formation in downtrend-BREAKDOWN
2. Ascending Triangle Pattern:
 We will connect a HORIZONTAL line In upper side by using 3 price
rejection point.
 From lower side there will be a trendline
3. Descending Triangle Pattern:
4. We will connect a HORIZONTAL line In Down side by using 3 price
rejection point.
5. From Upper side there will be a trendline
Pole and Flag Pattern:
1. Created in upper trend- Breakout

2. Created in upper trend- Breadown


[U shape] pattern fail in upper trend-

Points to remember:-If price moving continuously upper side by


making “U” like shape then be ready to short it it it break the
trendline by making price action
How to find out fake breakout:

1.If price has to give breakout then it has to spend some time near
resistance point. And from resistance point breakout candle
should form[if grren candle from very lower level it may fail due
to profit booking]

In this picture you can see that breakout candle started forming
from very lower point and if fail to give final breakout as negative
candle starts forming due to profit booking.

2.Only after 3rd rejection if price give breakout then it will be a


perfect breakout. Most of times 2nd test and 3rd test near resistace
level is a breakout failure.

Here you can see after 3rd test it gave breakout and afer
consolidation it gave breakout that’s why it was successful
breakout.
Enty and exit:
1.we will enter after 3rd try
2. It should create a price action before breakout near trendline
3. Stoploss will be the low of immediate higher high Price Action
4. Target-
In NIFTY you have to take 10-15 points in momentum
In BANKNIFTY you have to take 40-50 points in
Momentum.
==========================Example=====================
1.7.2020:

2.7.2020:
3.7.2020:

6.7.2020:
7.7.2020:

8.7.2020:
9.7.2020:

10.7.2020:
13.7.2020:

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