What are they exactly?
Let's take a look at the Ascending Triangle Pattern I found posted on StockCharts.com...
If you are a new trader these are some of the best setups to feast your eyes on, and ones that you can easily recognize on your own.
Also, these patterns typically allow for ideal stop-losses, where I can usually set my stops 2-4% below the current price.
Let's take a look at a current trade that I took earlier this morning: TripAdvisor (TRIP):
Perfect Ascending Triangle, and I took a long position just before it broke out, in order to keep risk tight. My long entry was at 64.42 with a stop-loss at 62.38 - only 3% being risked overall on this trade. You can't beat that. Also, assuming it breaks out like it is trying to do today, I will raise my stop-loss with the 20-day moving average, which is a fantastic way to preserve the gains on the trade, as the moving average has provided solid support in the recent past.
Trading isn't easy, but it can be simple... Do that for yourself!
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>
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