EUR/USD Ascending Triangle, Waiting For A Break And Retest
Hi everyone,
Happy first of august 2022. May you all have a successful profitable month.
We are on EUR/USD today.
Let's start with the daily time frame. Price has been moving steadily downwards bouncing inside of a giant channel. Every time the price has hit the bottom of the channel, it has perfectly bounced off of it and moved towards the top of the channel which then acts as resistance.
When we switch to the 4-hour time frame, we can see that price has been trying to break through the current resistance line numerous times but has failed every single time.
The ascending trend line is acting as support and the price is slowly starting to squeeze tighter and tighter with support and resistance getting closer and closer. I am looking for a breakout from this pattern. These types of patterns are generally called Ascending triangles. We usually look for a break out before the apex of this pattern is reached.
We have two possible scenarios that I would be looking for that would be tradeable.
GOING LONG –
I will trigger a pending long position if we see the price break out of the ascending triangle to the upside.
We need to see accompanying strong bullish volume with a bullish breakout and close above the resistance line. If we see this, then I will set up a pending order when the price retraces to the top of the resistance line and flips it to support. I will look for a possible risk to reward of 1 to 2 or 1 to 3.
GOING SHORT –
If the price fails to break the resistance once more and closes below the ascending trend line which is currently acting as support, then I will look for the same possible movement. I will wait for a breakout and close and then set up a pending short position with my targets being previous support around the 1,0 price point.
My personal bias currently is bullish as on the four hours we do see the price moving upwards and squeezing closer towards the top of the resistance line.
However, I only trade what the charts show.
Remember, the goal is zero emotion and systematic trading.
Let's see what this pattern does
The Vortex Trader.
Happy first of august 2022. May you all have a successful profitable month.
We are on EUR/USD today.
Let's start with the daily time frame. Price has been moving steadily downwards bouncing inside of a giant channel. Every time the price has hit the bottom of the channel, it has perfectly bounced off of it and moved towards the top of the channel which then acts as resistance.
When we switch to the 4-hour time frame, we can see that price has been trying to break through the current resistance line numerous times but has failed every single time.
The ascending trend line is acting as support and the price is slowly starting to squeeze tighter and tighter with support and resistance getting closer and closer. I am looking for a breakout from this pattern. These types of patterns are generally called Ascending triangles. We usually look for a break out before the apex of this pattern is reached.
We have two possible scenarios that I would be looking for that would be tradeable.
GOING LONG –
I will trigger a pending long position if we see the price break out of the ascending triangle to the upside.
We need to see accompanying strong bullish volume with a bullish breakout and close above the resistance line. If we see this, then I will set up a pending order when the price retraces to the top of the resistance line and flips it to support. I will look for a possible risk to reward of 1 to 2 or 1 to 3.
GOING SHORT –
If the price fails to break the resistance once more and closes below the ascending trend line which is currently acting as support, then I will look for the same possible movement. I will wait for a breakout and close and then set up a pending short position with my targets being previous support around the 1,0 price point.
My personal bias currently is bullish as on the four hours we do see the price moving upwards and squeezing closer towards the top of the resistance line.
However, I only trade what the charts show.
Remember, the goal is zero emotion and systematic trading.
Let's see what this pattern does
The Vortex Trader.