Qazi Forex TipsIn this lecture
- What symmetrical, ascending and descending triangles are and why they work
- Why shorting at resistance is not always correct
- Timing entries and exits in an ascending triangle
- Finding higher-probability breakouts
Shorting at resistance is not always correct. In an ascending triangle I explain why, and how to time the entry and find the higher-probability breakout.
From the lecture
Read what the chart is doing now, on several timeframes, before any indicator or signal.
How Dr. Qazi teaches
Lesson notes
The three triangles
- Symmetrical: two converging trendlines with roughly equal slopes (lower highs and higher lows). It shows balance; the breakout can go either way.
- Ascending: flat resistance and rising lows. Buyers keep pressing, so it often breaks upward.
- Descending: flat support and falling highs. Sellers keep pressing, so it often breaks downward.
When the two lines converge with clearly different slopes in the same direction, the pattern is a rising or falling wedge, not a triangle.
Why shorting at resistance can be wrong
In an ascending triangle the flat top looks like resistance, but each higher low shows buyers getting stronger. Selling every touch of the top fights that pressure and is often caught by the breakout.
Trading the breakout
- Wait for a candle to close outside the triangle.
- Prefer breakouts in the direction of the trend before the triangle.
- A retest of the broken line gives a lower-risk entry.
- Target: the height of the widest part of the triangle, projected from the breakout.
- Breakouts very close to the apex are weaker; the best moves usually start earlier.
Khulasa (Roman Urdu / Hindi)
- Symmetrical: dono taraf ka balance. Ascending: flat top, uthte lows. Descending: flat bottom, girte highs.
- Ascending triangle ki chhat par baar baar sell karna aksar nuqsan deta hai.
- Breakout ki candle close ka intezar karein, retest behtar entry hai.
- Target: triangle ki sab se chauri jagah ki height.
Questions
Which way does a symmetrical triangle break?
Either way. Prefer the direction of the trend before the triangle and wait for a candle close outside it.
How do I set a target for a triangle breakout?
Measure the height of the widest part of the triangle and project it from the breakout point.
Is an ascending triangle bullish?
It usually breaks upward, but not always; wait for the close outside.
Is a descending triangle bearish?
It usually breaks downward; confirm with a candle close below support.
What is a triangle false breakout?
A break outside the triangle that quickly returns inside; it often leads to a move the other way.
What is the difference between a triangle and a pennant?
A pennant is a small symmetrical triangle after a sharp move (flagpole); a triangle can form anywhere.
Related lessons
Head and shoulders pattern: how to confirm and trade itPrice Action Basics
How to identify and avoid false breakoutsPrice Action Basics
How to draw trendlines correctly: swings and rulesEducation only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.