The classic strategy (1): Entry: Take a long position at the breakout of the resistance starting from the fifth rotation and if the price is on the higher third of its annual range Stop: The stop is placed below the resistance Target: Theoretical target of the pattern Advantage: Strong probability to win Disadvantage: Bearish breakouts have more potential than bullish breakouts
The classic strategy (2): Entry: Take a short position at the breakout of the support starting from the fifth rotation and if the price is on the lowest third of its annual range Stop: The stop is placed above the support Target: Theoretical target of the pattern Advantage: Strong probability to win Disadvantage: -
The aggressive strategy : Entry: Take a long position at the contact with the support and a short position at the contact with the resistance Stop: The stop is placed below/above the last lowest/highest Target: Opposite band of the triangle Advantage: It could have many rotations Disadvantage: At its beginning, the pattern is hard to see
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