Risk-to-Reward Analysis

A minimum 2:1 win-loss ratio is key to maintaining profitability.

Example:

• Entry: $44.26
• Target: $44.72 (1.04% gain)
• Stop 1: $44.14 (0.28% risk) → Win/Loss Ratio = 3.71:1
• Stop 2: $44.06 (0.45% risk) → Win/Loss Ratio = 2.32:1

While both stops are valid, Stop 2 is safer and still exceeds the 2:1 threshold.

How to Trade Symmetrical Triangle Pattern

Here’s a step-by-step symmetrical triangles trading strategy:

1. Confirm breakout with volume spike.
2. Enter the trade after breakout (bullish or bearish).
3. Place stop-loss beyond the triangle’s opposite level.
4. Set a target equal to the triangle’s size.
5. Once the target is hit:
   • Close 50% of the trade.
   • Keep the other 50% open for potential trend continuation.
6. If price action shows a reversal (e.g., candlestick reversal pattern), close the remaining position.

Example from Boeing Chart

A 10-minute chart of Boeing illustrates the strategy:

• Triangle identified
• Bearish breakout confirmed with volume
• Stop-loss above triangle’s third top
• Target of 1.09% with 0.47% risk → Win/Loss Ratio = 2.32:1

Trade management:

• 50% closed after hitting minimum target → 0.6% gain
• Remaining 50% closed on reversal signal → 0.45% gain
• Total profit: 1.05%

Conclusion

The symmetrical triangles pattern is a versatile tool. To trade symmetrical triangles successfully:

• Identify real breakouts with volume.
• Use a structured stop-loss aligned with triangle structure.
• Set targets equal to triangle height.
• Manage trades in two stages to lock in profits and ride trends.

Mastering how to trade symmetrical triangle pattern ensures you balance risk and reward consistently.

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