Original subtitles

Hello and welcome back to cryptocurrency trading masterclass by, well, the education.

We now begin module two profitable patterns for crypto trading in this video, how to profit from triangle

patterns.

So a triangle pattern is simply when a market starts to squeeze, draw a couple of trend lines.

And essentially what happens is the market gets tighter and tighter and tighter.

The idea is eventually it squeezes in one direction or the other.

This is what's known as a symmetrical triangle because it is symmetrical.

This is a descending triangle.

And this, of course, is an ascending triangle.

So they all feature the same thing where the buyers and the sellers start to kind of squeeze the market.

But the attitude is different.

So, for example, in this one, it's a 50 50 shot.

What that means is that.

There is no clear winner, you have both buyers and sellers squeezing the market and eventually one

of them gives way when them loses and the market continues to go either higher or lower.

There is the descending and a descending favors the down side.

This is because the sellers are becoming much more aggressive, pushing the market down.

But there is a certain support level.

So the idea is eventually the support level gives way.

The people who were buying give up and it breaks down.

And then there's the.

Ascending triangle, it's the exact opposite of the descending.

It's typically bullish and what happens is the sellers continue to push at the same level, eventually

getting broken through, and then they have to cover their shorts and the buyers overwhelm them.

So.

A couple of things that make triangles kind of unique and great trading patterns is the fact that the

market, everybody recognizes them.

They are very obvious for a lot of different traders to pay attention to.

And with that, it's kind of a self-fulfilling prophecy.

So with that in mind.

On higher time frames that become even more effective, more people are watching them.

It's just simple compression of the market.

Eventually there's a decision made and you make a move.

Another thing to keep in mind is they have a built in measuring stick, as it were, from the top to

the bottom of the triangle pattern.

You extrapolate that on the breakout.

So let's just say that's twenty dollars a break to the top of it.

You're looking for twenty dollars from the breakout point.

If this was, you know, two hundred dollars on a breakdown, you're expecting a to drop two hundred

dollars from the bottom of the triangle.

And if this was sixteen hundred dollars, regardless of the direction you'd be looking for sixteen hundred

dollars on a symmetrical triangle.

So let's take a look at a couple of examples.

And here in the Bitcoin USDollar market, here is a triangle.

This is a symmetric triangle.

Another thing that, you know, you may want to keep in mind is you do not want it to run out of time.

So what that means is you don't want it to reach the apex, because if it does, then it's just the

market running out of steam.

Well, in this case, that clearly wasn't the case.

We did not reach the apex and break through it.

So you can extrapolate the move here, the height of the triangle, and you can see Bitcoin went right

to that level.

Ethereum, so this is an ascending triangle on the daily chart, you can see that we had.

Pretty significant resistance there we broke before we got to the apex, and in general, you want to

see no more than about 80 percent of the triangle filled.

You want to see a breakout before then.

We did break out over it.

And you can see not only did we get the target.

But we also really just kind of took off to the upside.

You can see that there was a little hesitation there and then we continued much further.

But nonetheless, you did hit your target.

And here in Catano, this is a descending triangle.

You can see that here on the 30 minute chart.

We formed.

This triangle.

You can see from top to bottom.

We did.

Make the measured move.

Now let's talk about a couple of other things that you can kind of throw in to the trading of these

patterns.

So the first thing is when you get a triangle and it really doesn't matter, the shape, the idea is,

is that you get the breakout, you know, let's just say the symmetric triangle breaks to the upside.

Well, you put the stop loss on the other side of the triangle.

You're aiming for the height of the triangle.

That's obvious.

This is kind of handy because like in this case, in Cordano, you had this amount of you know, this

is roughly four percent.

You know, your stop loss would only be about a cent, you know, and you and you never really ran into

trouble.

You're on the other side of the triangle.

No issues whatsoever.

And you continue going lower.

So it's kind of a nice little mechanical way to trade this.

There are some things that you can do to perhaps try to.

Maybe bring your hit rate a little higher.

So this is a nine moving average.

I like using the nine on the short term.

You can see that we had broken through this and we are following that right along.

So it's a nine period moving average.

You could also make an argument that this was previous resistance, so, of course, its support here,

support gets broken, should turn into resistance, and it did.

A theory, this is a nice large round number right around the six hundred dollars level, so that in

and of itself makes it interesting.

You could put another moving average.

So let's go ahead, exponential moving average.

This is the daily, so I'm going to use a little bit higher time frame in this case.

Go ahead and change this to.

Twenty, for starters, you can see that the 20 offered dynamic support, we continued to go higher

there, you can also, for that matter, perhaps make an argument for maybe using your.

Fibonacci to.

From the.

Pull back to here and see that we did, in fact, on this spot at the high end, we pull back towards

the triangle that also matches quite nicely with the thirty eight point two percent Fibonacci retracement

level.

And then here on the.

Symmetric triangle.

Let's go ahead and redraw that.

You can see that the Bollinger Band got Overbite.

Got to the bottom of support, hit that middle 20 Esmay and that's where we broke down.

Furthermore, you would most certainly want to be taking profits down in this area in a way which also

matched up with that level.

So you can see just how many different things you can combine with triangles.

But quite frankly, most people just use the triangles themselves because so many other traders use

triangles and recognize triangles as a valid trading methodology, that there are some people who literally

that's all they use.

Higher time frames do tend to be a little bit more noticeable and attract a lot more attention.

And that makes sense because like on a weekly chart, you would need a lot more order flow in order

to build that triangle.

So certainly something to think about.

In the next video, we'll take a look at trading breakouts with double top and double bottom patterns.