These trading strategies have a one condition and that is there must be an impulse before placing trade on trend continuation patterns.
So following reasons must be fulfilled before placing trade on trend continuation patterns
1. There must be an impulse on left side of your chart either or .
2. Risk taking entry or entry before breakout.
you can place trade on trend continuation patterns before it breaks to the direction of your previous trend but
this strategy also has a condition and that is your Oscillators must show you overbought or oversold conditions
which means that price is about to breakout of the direction of your previous trend also you can use your Fib lines
for risk taking entry but remember every time your Fib lines gonna vary some time you gonna get entry on 618 or
some time your gonna get entry on 50 percent of your previous trend so it vary all the time. After placing trade
you can place your stop loss just behind the trend continuation pattern as you can see in the example. You can
set your target using your Fib lines. You also can see target example on the chart.
(i) Oscillators Overbought or Oversold conditions.
(ii) You can use Fib lines so that you can get the idea about the Retracement of your previous trend.
3. Risk adverse entry or Entry after breakout.
This strategy simply based on breakout. You can place your trade based on breakout of your trend continuation Patterns and can place your stop loss just behind the pattern. Risk taking entry has high risk and high potential but
less probability because breakout has not confirmed and price can stop you out and then can continue with the direction of previous trend but entry on breakout has less risk and has high probability as with compare to the risk taking entry. In case price do not continue with the previous trend then you can close your trade on break even because you rely on breakout and breakout has confirmed but pattern has changed itself. You can use same stop loss for both strategies.
For further information please look at the chart.
These are my trading strategies on trend continuation patterns. So please If you have better than this strategies on trend continuation patterns so please share your one rather than criticising negatively. I hope this will help lot of people in their trading. Also these are my own thoughts you have full right to agree or disagree.
We took this trade on live market and i thought that this is the best example to share with you guys so that you can understand how we take risk taking trade. If can watch this trader setup with explanation on you tube i have upload the meeting over there. You can take the link from my status.