Power Of Triangle Breakouts and the Phenomenal Risk to Reward

Hi Friends and Fellow Traders,

Sharing a closed position today and the associated learnings. The P&L is marked on the charts for your reference.
$NSE:CADILAHC

I have been a big fan of triangle patterns on 1H Frame or Higher. They take time to materialize but provide phenomenal risk to reward ratio.

I have been holding this trade for close to 60 odd days and the result is in front of your eyes. Did test my patience and also a few instances of recalibrating my position, however your

• Conviction to the trade ,
  
• Trading plan
  
• Observation of the information being provided by the market structure and price action
  
• Risk management
  
• Position sizing
  

eventually decides the success of a trader.

This was a breakout from a descending triangle hence it was a counter-trend trade. Such trades can go south pretty quickly if the breakout fails. In this case , there was an area of earlier resistance which had the potential of turning into a major support as the market had gone in a range as per the recent price action. I was banking on this as the final fall back. Combined with Support and Resistance Breakout and Retest, I saw value in entering this trade and risk reward was favorable.

In the end the strategy paid off and the market responded to the support , breakout and major rally.

Note : Though you see the SL being triggered on the charts , the position was not exited