RIO – Daily. Triangle Set Up

RIO is in a triangle formation

The chart below shows an ascending triangle with a horizontal line across the 2 highest trend peaks.

You could also draw a downward sloping line across the 2 latest peaks to describe a symmetrical triangle as shown by the dashed line. The horizontal line is more the more conservative approach requiring a break into new highs to complete a buy set up.

The conventional way to trade triangles is to enter in the direction of a confirmed break out of the triangle as long as that break doesn’t occur from too far into the corner of the triangle

The triangle set up may be either a short on a confirmed break of support or a buy on a confirmed break of resistance. Interesting to note though that the stocastic oscillator on the higher time frame weekly chart is trending down. Followers of a dual time frame strategy would only enter the short set up and would  stay out of the long set up while this applies

Cheers

Ric

About Ric Spooner

Over 30 years market experience - professional trader, broker, director
This entry was posted in Market, Shares, Stocks, Trading. Bookmark the permalink.

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