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  • Writer's pictureVasily Trader

Learn Best Price Action Pattern For Trend-Following Trading 📚


In this educational articles, I will teach you the best price action patterns for Trend-Following Trading.


📍Ascending & Descending Triangles


The ascending triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish.


The pattern consist of 2 main elements:

a horizontal neckline based on the equal highs,

a rising trend line based on the higher lows.


❗️The trigger is a bullish breakout of a neckline of the pattern and candle close above.

📈The position is opened on a retest.

🔴Stop loss is lying at least below the level of the last higher low.

🎯Take profit is the next historical resistance.


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📍The descending triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish.

The pattern consist of 2 main elements:

a horizontal neckline based on the equal lows,

a falling trend line based on the lower highs.

❗️The trigger is a bearish breakout of a neckline of the pattern and candle close below.

📉The position is opened on a retest.

🔴Stop loss is lying at least above the level of the last lower high.

🎯Take profit is the next historical support.


📍Bullish & Bearish Wedges


The bullish wedge pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish and the pattern is directed to the downside.


The pattern consist of 2 contracting falling trend lines based on the lower lows and lower highs.

❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above.

📈The position is opened on a retest.

🔴Stop loss is lying below the low of the pattern.

🎯Take profit is the high of the pattern.


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The bearish wedge pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish and the pattern is directed to the upside.


The pattern consist of 2 contracting rising trend lines based on the higher highs and higher lows.

❗️The trigger is a bearish breakout of a support of the pattern and candle close below.

📉The position is opened on a retest.

🔴Stop loss is lying above the high of the pattern.

🎯Take profit is the low of the pattern.



📍Bullish & Bearish Flags

The bullish flag pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish and the pattern is directed to the downside.

The pattern consist of 2 parallel falling trend lines based on the lower lows and lower highs.

❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above.

📈The position is opened on a retest.

🔴Stop loss is lying below the low of the pattern.

🎯Take profit is the high of the pattern.

——————


The bearish flag pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish and the pattern is directed to the upside.


The pattern consist of 2 parallel rising trend lines based on the higher highs and higher lows.


❗️The trigger is a bearish breakout of a support of the pattern and candle close below.

📉The position is opened on a retest.

🔴Stop loss is lying above the high of the pattern.

🎯Take profit is the low of the pattern.


📍Bullish & Bearish Symmetrical Triangles


The bullish symmetrical triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish.

The pattern consist of 2 contracting symmetrical trend lines based on the higher lows and lower highs.

❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above.

📈The position is opened on a retest.

🔴Stop loss is lying at least below the last higher low of the pattern.

🎯Take profit is the high of the pattern.


——————


The bearish symmetrical triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish.

The pattern consist of 2 contracting symmetrical trend lines based on the higher lows and lower highs.

❗️The trigger is a bearish breakout of a support of the pattern and candle close below.

📉The position is opened on a retest.

🔴Stop loss is lying at least above the last lower high of the pattern.

🎯Take profit is the low of the pattern.


The main difficulty related to trading these patterns is their recognition. You should train your eyes to recognize them on a price chart.

Once you learn to do that, I guarantee you that you will make tons of money trading them.

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