Guys, I am trying to understand tech analysis, now I am studying chart patterns of reversal after trend. I would like to understand how to find and determine them and how they work (e.g. how to get signal from them). Please share your mind. Thanks.
I used to have triangle pattern as the basis to receive signals for entry. Can’t say that it was too ingeneous, but it worked in 60-70% cases. Due to price movement which has wave nature, triangle on 1H timeframe clearly shows that price is going to reverse. But I noticed that the sharper is the angle of pattern, the more was likelihood to receive clear signal of reverse. Hope my observations will be of help to you.
Oh, it is quite interesting I never used triangle in my trading, only head and shoulders