Comments on: Forex Candlestick Continuation Pattern Tutorial 1 – Triangles

By: Nelson

Nelson — Mon, 14 Jun 2010 14:07:01 +0000

Hi Kelvin

Thanks very much for the explanation =]

Regards
Nelson

By: Kelvin

Kelvin — Sat, 12 Jun 2010 16:42:51 +0000

Hi Nelson

Nice to have you here.

Regarding your question number 1 on which time frame to use, there is no specific time frame you can use this triangle pattern. In fact, the triangle pattern is useful in any time frames. It is just that the higher the time frame you spot this triangle pattern, the more movement it can give you.

As for the fakeout, you can make use of MACD indicator to minimize it. When there is a triangle formation, there must be a breakout and since the risk reward ratio for breakout trade is very high, it is worthwhile to enter a trade even if there is a chance of fake out as your profit will far cover those fake out losses and still able to make you money.

By: Nelson

Nelson — Thu, 10 Jun 2010 22:41:36 +0000

Hi Kelvin

May I ask the following:

1. Which chart zone (e.g. Monthly, Daily, Hourly) would it be better for the use of this observation?
2. If the breakout happens in the opposite directions of what you have shown in the screenshots, should we still consider any setup, or should just close this observation and move on to look out for another correct setup?

Thanks and regards
Nelson