This strategy is based on the breakout of the break lines, which are determined with the help of calculations and taking account of the position of the bars. This pattern is built up on the basis that at any time there are two lower and two upper fractals on the chart.

Then draw skew lines across the two lower and two upper fractals. The intersection point of these two working lines is called the Apex.

Then we shall draw a vertical line through this point. After that we can draw a vertical line through the second left-hand fractal. The number of bars shall be divided into 3 and rounded. After this, put this number on the left-hand side from Apex and draw the third vertical line.

The distance between the second fractal and the middle vertical line is called the zone of the actual breakout.

Note that the intersection of the lines, which we have drawn through the fractals, may not occur immediately. If the conditions are not suitable for this trading system, we can introduce a number of criteria, which will enable building a triangle. It seems to be clear; however, how can we define the number of the bar, at which the intersection of two working lines will occur?

As we know, at the breakout moment, there are no new bars on the chart, consequently, we do not know if the breakout is actual or not; meanwhile it is high time to open a new position. We can calculate the zone of the actual breakout with the help of the timing parameters intersection of the lines is determined by the time range. We know that each bar appears on the chart at a certain time interval.

For example, at the timeframe H1 the interval is one hour.

Knowing the rate of price change per unit of time for each of the lines, we can calculate the time of intersection of these lines. Knowing the time interval from the base of triangle to the moment of intersection, we can calculate the number of bars unit of time prior to intersection. Here will be the zone of the actual breakout. As soon as the price breaks through the triangle, a protective order shall be placed.

Stop-loss is placed slightly below the first fractal or slightly above the second one, depending on the direction of the transaction. Take profit is calculated as follows: If the price direction is favorable for us, we can shift stop-loss into the breakeven zone or use a trailing stop. This trading strategy can be used on any timeframe starting from M5, however the best recommended is the timeframe H1.

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FAQ LiteForex FAQ on LiteForex's services Contacts Feedback, LiveChat and all the contacts. The first fractals of the upper and lower lines shall be at the distance of points from each other.

The distance between the first fractal of the upper line and the first fractal of the lower line shall be longer than the distance between the two second fractals. The first fractal of the upper line shall be higher than the second fractal of the same line; while the first fractal of the lower line shall be lower than the second fractal of the same line. Follow us in social networks! Facebook Twitter Google Youtube RSS Feed MQL5.

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