FTSE100 Triangle/Wedge forming

Triangles (Wedges) are a combination of indecision and uncertainty – Even better when the wedge forms as part of a sequence of consecutive Inside days

ftse100-wedge

Nothing in Trading is 100% – what typically happens is when the high or the low of the last bar in the wedge is broken then that’s the direction its heading in – you can place stops either under the low or above the high of the last bar in the sequence (see chart for target values) or at the 50% point of the last bar as more often than not price just breaks cleanly away without retracing – this makes the targets on the chart twice as profitable!

Please note: due to limitations of my software Ex Ret 2 = 1 times risk, Ex Ret 3 = 2 times amount risked etc (which is the last bar on the chart)

Trade at your own risk – no responsibility accepted

 

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1 Comment

  1. This trade triggered to the UP side and then if you’d of set your stop at the 50% level of the last bar you’d of been stopped out for a loss, if you didn’t then you’d still be in the game with your stop under TODAY’S low with a live LONG trade in play.

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