Trade the Triangle
This is Paul Wett, from www.WettTraderLLC.com. I’m here today folks to try to show you how to take advantage of some of the trades that we call “triangles”. This is gonna be a real short lesson on triangles folks!
Triangles my friend are really easy! They’re easy to see, at least in my opinion because I’m a visual guy and they’re easy to trade. Especially with WettTraderLLC.com
What a triangle is folks, it’s the markets coiling up because we ran out of buyers here, sellers took control of the market. We ran out of sellers here, buyers took control, came back, we’ve retest the previous high. So what this means is, (this high is less) this high right here is less than this high. Okay? Less than this high.
Same thing here. This is a high. This is a low and this is a low and this low is higher. And then here folks, here’s the breakout. Here’s what happens with a triangle.
Everybody who shorted it, put their stuff up here, everybody who bought it, put their stuff down here. So if it goes through here, chances are we’ve got a lot of sell orders. If it goes through here, chances are we’ve got a lot of buy orders [the folks that are covering their shorts].
The other thing that this can tell you that very exciting on my opinion is when you get a triangle, there’s a real high probability that you can project the distance! and that’s what I love about it because I know where to get out, maximize, and shoot for the moon profits. Shoot for the moon folks! If you don’t shoot for the moon, you won’t ever get there. Listen, if I can shoot for the moon and get half way, I’m excited. I’m really excited.
This is my high at 1910, this is my low at 1864. 1910 – 1864, that’s about a 45 point triangle right? About 45 points. 1910 minus below at 1864, sometimes it can become conservative depending on the market go from your high here but I like to see where these things are going and I want to squeeze every dollar out of this trade. 1910 – 1864, it’s about a 46 point trade. So what it does is when it breaks out, it’s gonna stay above this trendline. This is important folks, very important folks you’ve got to watch this.
Now this was a 30 minute, we’ve sold it because we had the set of 818. What we wanna do when this thing breaks out, you need to make sure that we stay on the trend. For 1840, for all of you new folks 1840, all we got to do is slide this right off, see? Real simple, touch again 18, go 40, and then what happens, then you click update. You can do this while it’s running. Then you click update, and then what that does is that will look for buys, as long as this line is 18 and this is a 40, it’ll look for buys until that line crosses. Okay?
So if we have this triangle that I’ve just pointed out and we have that, now what do we do? We wanna trade it with WettTraderLLC.com and this is really exciting down with this triangle folks and I’ll show you why. As long as we have these big high bars is our significant highs, significant lows, (one, two, three, four, five) (one, two, three, four, five) okay. So this is a triangle right here folks. I’m just gonna make sure you guys can see it, I’ll also show it on the… Now if we break out, retest, we gonna make sure that we get a close on the breakout, a little worried here but like what I’ve said. “The market will tell you which way to go folks! Don’t be banged up here, be patient, let the market tell you which way it’s gonna go and then get on the train!” here you go, comes back, pulls back, key reversal up. Makes a higher close on the previous bar, makes a lower low. Went out of sellers here folks, nobody wants to sell! Then we penetrated it, boom, boom, boom. Now like what I’ve said we have a 46 point range. This is 18, this is about, the one that we do is we take the breakout right? So we take the breakout area which is right here. This line is about 1895 we’ll call it, add your 46 where are you guys going? You’re going to at least about 40, you’re going to about 1940. Okay? 1940 folks! We went straight up to 1936, that’s about a $2000 trade! It’s a $2000 trade folks! This is a $2000 trade.
You’ll find these triangles, are usually spotted on complex waves. They’re usually on a wave four, it’s usually when I see most of the time. Once in a while I see on a wave two on a correction, and what usually happens is when the market runs out of gas, and it tries to correct on the wave four and a wave two, the market will decide which way to go. If it’s going to get down on a wave five or a wave three and I don’t care which way it goes. I just want to be on the train when it leaves the station! Right here folks, this is where you want to be. www.WettTraderLLC.com if you want to learn to trade triangles, give us a call! www.WettTraderLLC.com Let’s make some money!
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