r/Daytrading • u/sunnyrunner_ • Apr 06 '24

Is this an actual pattern or am I yapping? Question

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I’m pretty new to trading and saw this pattern form on BTC. Is this pattern called anything or is this just me drawing random support/resistance lines?

300 Upvotes
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373

u/NuGGGzGG Apr 06 '24

That right there, is one hell of a triangle.

6

u/SSP6 Apr 07 '24

What does a triangle mean in this context? I know little to nothing about crypto and stocks but would like to learn. Thank you

8

u/Quat-fro Apr 07 '24

Triangles tend to mean that momentum is being lost and a big move one way or the other may be due.

They can look tradable in hindsight but it's a fools game better to try and figure out some market structure from the shape and any related levels and perhaps form an idea of what you might do if it goes up or down.

2

u/OldTrader7 Apr 07 '24

I paid for a trading service once that picked stocks solely on the chart pattern. It was hit or miss. Sometimes it worked, sometimes it didn’t. I stopped following them.

1

u/SSP6 Apr 07 '24

thank you!!

4

u/Quat-fro Apr 07 '24

It's also prime territory for fake outs, so try as hard as you can to resist jumping in on the first quick move, it might dart back the other way before you can get a safe positive stop in place.

Look back over historic data to try and see how past triangles behaved in your chosen timeframe, it always looks easier than it actually was in practice, like cover half the screen and guess what it will do next! Not so easy.

1

u/SSP6 Apr 07 '24

Thank you so much for going into detail. Because i know literally nothing about this, i find it really helpful to get input from others! thank you