Bybit Ambassadors
Published in

Bybit Ambassadors

Trend Analysis — Part 4: Triangles

Dear Bybiters,
I am glad that you found time and decided to take some time to read this article. I want to share with you my favorite strategy in the crypto market. A strategy which has been giving me great profits throughout more than one year. A strategy, where you should not think about in which side will the market will. A strategy with an understandable stop loss and take profit. A strategy, based on triangles. I will show you my technique, and accompany it with plenty of examples, where you can increase your capital with this strategy.

A triangle chart pattern involves price moving into a tighter and tighter range as time goes by and provides a visual display of a battle between bulls and bears.

The triangle pattern is generally categorized as a “continuation pattern”, meaning that after the pattern completes, it’s assumed that price will continue in the trend direction it was moving before the pattern appeared.

A triangle pattern is generally considered to be forming when it includes at least five touches of support and resistance.

There are a lot of different triangles in Technical Analysis and a lot of rules for them as well. Some of them have more chances to be bullish, some of them are more bearish. But when you start to trade them: bearish becoming bullish and vice versa. As for me, all this knowledge, about bullish and bearish models of triangles can only decrease your capital. The same thing with Eliot Waves triangles.

So, my method for basing my trading both sides. Lets look for this triangle:

You can see that we have 3 times touching resistance line and support line on 1h, narrowing the range. This information is telling us that soon we will see the big move. But we don’t know in which side the price will go. Therefore, we are setting two orders on our pivots: long at 9855 (resistance line) and short at 9614 (last pivot on support line).

Setup with R/R = more than 1 will look like:

Stop loss = our break point (9855 for short and 9614 for long)

Take profit = 1,618 for long and -0,618 for short by fib, or distance between first two pivots inside triangle (9855–9600 = 255$)

Triangles are very popular pattern on BTC. I will show you some examples:

And sometimes you can see triangle inside of another triangle with great R/R

Of course, trading is not a science, if we see, that buyers are strong — better to close this trade and wait for another one

So, we have very simple, but well working strategy. It can help you to increase amount of great trades in crypto, or even on other markets. You can add some indicators, or other TA , but I know successful traders, who use only triangles in their strategies. Who knows, maybe you will be in this list?

In the end of this article I want to ask you. What do you think about this triangle? Lets discuss in our



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Serhii Bybit

Serhii Bybit

Crypto trader and BTC maximalist #биткоин #криповалюты