When the PA doesn’t set up as a 3Min Bolli, this is such a good pattern for buying dips – probably selling pullbacks too. I could also use these principles to make better trade selections and entries for the 3Min Bolli 2nd chance.
Because it is designed to capture a false breakout, it only really makes sense to trade in line with the main trend .
The advantage of using the triangle entry is that once price has recovered the KL, it often moves fast so they would be slippage and a poor entry, and the triangle allows me to get in before the level is regained.
Now that I have noticed this formation, I see that it is very common setup on the Dax and provides an excellent filter for which triangles to trade and in which direction. Here’s an example from May 2nd:
