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Hello and welcome back, So we have learnt how a symmetrical triangle
is formed and we know what swing highs and swing lows are. We a can actually bring both
of the concepts together to make a simple method of how you can trade this, now remember
that context is very important so let's look at a symmetrical triangle in an uptrend.
so we have seen this one before in the previous video what we are going to add now is that
"where is the point to buy?" And that point is going to be a latest swing high. You see
its quite simple if you think about it, if you are moving upwards and we get a pause
in the pattern or a continuation pattern like this one, your natural resistance point will
be a natural and logical place to buy because at that point sellers have sold or buyers
had dried out, so your latest swing high is that point. So if markets can cross this swing
high it is reasonable enough to say that markets shall continue up and the bulls have regained
control, so your stoplossto buy is going to be the swing high so when the markets move
up and break out that is going to be the entry point, the stop loss is going to be the latest
swing low where there that is your latest swing low and that's about it, the next is
what if we are in a downtrend. When we are moving in a downtrend you will
see that we have a swing low and short that point and your latest swing high is going
to be your stop. So all these will be stoploss limit orders ask your broker if you don't
know how to do that, they will trigger automatically and you will get into your buy or sell positions
when market prices reach that point that you have specified. Don't forget to put your stoploss
it is basically on the opposite side when you are buying in an uptrend your stoploss
is going to be your latest swing low and when you are falling in a downtrend and you sold
short your stoploss is going to be the latest swing high, now lets go back to those three
charts that we discussed earlier in the previous video IDFC Reliance and Reliance Communication
and how we can actually put trades in them. So this is IDFC 30min chart and as you know
this is our triangle we are looking to short because we are in a downtrend so your latest
swing low is this point which the market breaks-down quite violently I might add and continue to
fall your latest swing high, that point is going to be your stop loss.
The next chart is Reliance communications, pretty much the same story, we have a swing
low which broke down and the swing high is going to be your latest stop loss. The next
chart is reliance and again this is quite an easy pattern to see here, we are looking
to short again and swing low broke down and our point to short is obviously the swing
low and the swing high is where we keep the stop. So I hope you can now trade these patterns
you know how to identify them and you do know how to trade them, if you have any questions
you could go down to MarketScientist.in Do visit because we have tons of resources
for traders and investors to learn how they can be a better trader we also have a lot
of tools and concepts that you can learn as a premium member, in the premium member section.
So I hope I see you there and not to forget the next episode we will be talking about
flags, I hope you find that interesting because it is one of my favourite patterns and I'm
sure you will find it easy to trade as well, see you then!