A bearish pennant pattern has formed on the weekly EUR/USD chart following a double top pattern we traded earlier. The pole and the pennant are show with the yellow lines. The stop-loss level (the red line) is set to the highest point of the pennant part. The take-profit level (the green line) is set to the pole's length subtracted from the stop-loss level. I will open a trade only if the currency pair closes significantly below the pennant's lower border.
Order cancelled:
Trade setup cancelled as the pennant has been invalidated by Dec 31 price action.
You can find useful tools to detect, build, and trade chart patterns - all completely free on www.earnforex.com.