The Descending Triangle Forex Swing Trading Strategy
This swing trading strategy is one of the triangle pattern formation and it is quite easy to identify:
First is the market has to be in a downtrend. The price will have a slight consolidation when it hits the support line. It then moves up and touches the falling trendline which is the resistance area. The price will squeeze until it breaks the support.
Trading Rules:
- The candle must break and close below the support line.
- Place a sell stop order 3-5 pips below the low of the breakout candle.
- Place stop loss right above the downward resistance line or place it around 5-30 pips above the high of that breakout candlestick.
- Take profit 3 times what you risk or calculate the height of the pattern and use it to take profit target price level. (In the image, it uses the height of the pattern.)
Open an NZDUSD daily chart
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