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[Oluti]

Triangle patterns form when price action oscillates between support and resistance and consolidates in the process.

On the 4 hour chart of the GBPJPY below you can see how price begins to tighten or “coil up” between support, the lower black line, and resistance, the upper black line. As with anything that keeps on being compressed over time, an ultimate breakout will take place.



The candle labeled “entry candle” is currently just above our triangle resistance line. If this candle closes above that resistance line, that will be our entry signal. (If it does not, we will continue to bide our time for either a bullish or bearish breakout from the pattern.)

Stop Placement:

If the entry candle does in fact close above our resistance line, we could enter the trade long with a stop just below the support line in the area labeled “stop” in red. In the case of a downside breakout the stop would be placed above our resistance line.

Limit Placement:

When you look at the far left side of the triangle where the pattern begins, you will see a green line with arrowheads at either end. In the case of any triangle pattern, that distance can be used to roughly determine the distance that price will travel after the breakout occurs.

The green line just to the right of the entry candle is the same length as the one discussed above. In the case of a bullish breakout we would place that line (or simply determine the number of pips it encompasses) as we see it on the chart and set our limit around the top of that line. (We could set our limit just below the top of the limit line to increase the likelihood that our limit would be triggered.)

In the case of a bearish breakout, we would reverse the above process and place the line below support at the point of the breakout.

 

[lioralace]

Alright, let’s toss aside the robotic tone and get real—trading triangle patterns isn’t black magic, but man, it feels good when you nail a breakout. You ever stare at a chart and think, “Look at that thing just winding up, tighter and tighter, like it’s itching to pop?” That’s a triangle pattern in action. All that sideways, almost-boring movement? It’s the market holding its breath. GBPJPY on a 4-hour chart—classic example, by the way—is basically a coil ready to spring, and anyone with a pair of functioning eyeballs can spot the tension.

Here’s what’s really happening: buyers and sellers are squaring up, playing tug-of-war as price zig-zags between two pinching lines. People love sounding fancy with “converging support and resistance,” but really, it’s a cage match, and eventually, someone’s gotta tap out.

Zoom in on that GBPJPY setup. The price is bouncing between a beefy resistance up top and solid support below. As it gets closer to the tip—yeah, that pointy apex thing—the odds of a breakout shoot up. Timing is everything here. That so-called “entry candle,” the one that busts out above resistance or crumbles below support? That’s your big moment. If it closes strong, you’re in. If not, don’t be stubborn—seriously, the graveyard of forced trades is packed with impatient traders chasing shadows.

Let’s not be dumb about risk, either. If you’re gonna take a trade, know where your parachute is. For bullish moves, throw your stop-loss just under the bottom line. If stuff goes south and you’re betting against the market, flip it—stop goes a smidge above the top line. Real talk: triangle fake-outs are brutal, and you don’t wanna be holding the bag when one hits.

Profits? Here’s where triangles flex. Measure that fat part of the triangle at the start—the distance from support to resistance. That’s your yardstick. When the breakout happens, tack that same distance onto the move in whichever direction things explode. No need to get greedy: cut the target just short of the full projection. Stuff gets weird as price nears major levels and you wanna walk away with something, not nothing.

Main thing to remember: wait for confirmation. Do not let FOMO dangle you into a premature move. Protect your bankroll. Be realistic with targets. And for crying out loud, don’t chase every breakout like a puppy after a tennis ball.

Triangles are more than just fancy geometry—these patterns are pressure cookers, and when they blow, they move with a purpose. Play them right and you’ll start feeling like you’ve finally cracked the code—well, almost.