the power of the triangle in trading.

Abnormalities that are reoccurring are the best "hard-wired" edges to stack in ones favor for low risk entries.

One such dominant edge is exchange openings and closes where market makers need to facilitate trade imbalances and where charts experience unusual behavior. The power of the triangle in trading reveals an edge.

Studying these time zones and taking advantage of typical price behavior, order flow, and volume is advised

Another time-related edge is the price formation of a triangle

Please be advised that we consider trendline drawing only two methods:

connecting candle stick bodies

or

connecting candle stick wick ends

the following study of the recent Bitcoin daily chart has been chosen to illustrate the

power of the triangle in trading.

(as always we talk in probabilities not in absolutes but the probabilities in triangle TA as we use it is above 70% and as such a useful edge to be used)

Typically the edge for a trader in contracting ranges is mainly comprised in regards to time

This is a huge advantage to know "when" something is supposed to happen

In our case above we got additional benefits of information

At day "A" priced attempted a breakout to the upside and the breakout failed

in addition the price range extended throughout the whole Apex indicating that the triangle has run its course and a resolution to the indecision about direction is about to follow

Furthermore we can make out with a near dark cloud cover price pattern formation we have a reversal pattern in place

At this point we have a high probability for

sideways to down daily call for the upcoming day

= not trading long

and indeed on day "B" we get a sideways day range which breaks at the end of the session to the downside:

with a range break to the downside at the end of the session illustrated on the 60 minute chart above, we have confirmation of the dominance of bears.

as you might remember we had two entry opportunities short on that day based on our sideways to down call:

we chose the second target for the low of the day since this level was near day "A" lows and near the daily trend line of the triangle:

(see white circles)

at this point with the previous day long breakout attempt confirmed and the bears having a foot in the door there is a high likelihood with the tringle out of time that a breakout to the downside will be attempted

sitting on support both at triangle apex and previous days lows on a action reaction spot we can assume a quick bounce providing ideal opportunity to go short again for possible ample profit results

and indeed on day "C" we see the expected triangle breakout on a daily call of "sideways to down", where we finance on a double bottom and also take our next target on a wide double bottom

now we are left with two runners and thanks to the power of the triangle were able to exploit entries with very low risk for prime profits:

in our case the triangle provided both a high probability for "when" moves would be occurring and in what direction