pavan15589
Long

NZDJPY - Channel Breakout - Long

FX:NZDJPY   New Zealand Dollar/Japanese Yen
NZDJPY             has formed a descending channel . The descending channel is a price action that usually results in a breakout to the upside.
Though this classical pattern always is self-fulfilling, we may use another technique to confirm the breakout direction.
Whenever there is a channel formation, descending or ascending, a third line parallel to the channel can be drawn right across the middle of the channel.
The split channel is now used as a reference to analyze the amount of time the price action has been taking place, either in the upper or lower half of the channel.
If the price has spent a considerable time in a certain part of channel (upper half or lower half), then it confirms a breakout of the price in the side of the channel.
Therefore, the price on NZDJPY             has spent a significant amount of time in the upper channel evidencing breakout to the upside.

The targets for such a breakout can be set which yields a high R - R ratio.
Target 1 can be placed from the breaking point at a distance equal to half the distance between the two channel lines with stops just below the mid-line of the channel.
And Target 2 can be trailed or placed at a distance equal to the length of the channel with stops just inside the top of the channel.
pavan15589
2 years ago
snapshot
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out