New Pattern:
Descending Triangle,clear by just looking at the pics..formed by an horizontal(support) line plus a descending trendline...In theory ,it is a pattern to go short.
How to trade it as per the book:
1-Short 1 tick/pip below the low of the breakdown bar.
2-stop above the descending trendline.
3-Target :measure triangle depth at the lowest and highest points(up to the breakdown bar
)..set targets at 50% and 100% range.
My comments:1-The targets are not very clear..I would look for nearby support points or just a fibo expansion(downwards) of the highest height of the triangle(anything from 1.382 to 2)..and estimate if the reward to risk makes it a worthy trade.
2-It is not necessarily a short setup,you can use the descending triangle for long setups too,I just look for 2/3 conditions..1-fake/rejected support breakdown..2-close above the descending trendline..3-confirmation by some trendfiltering method,like stlm2 ,etc..so,in the 3 pics that I attach ,you see 3 long entries just executed.
New Entries:We are long Crude Oil,Gold(spot) and Silver..correlated,and today is NFP day,so,I have reduced the size of the positions..if the trades go well I expect them to last for around 3 to 5 days,and will look to add more contracts to them..if they don`t I will use stops at BAR CLOSE to close them.
Regards
Simba