Choosing an Entry: Triangle Set Up on the USD/JPY
When a chart pattern alert appears there are a number of entries that could be valid to capitalize on the support and resistance of the formation. The 30 minute USD/JPY has formed a Continuation Descending Triangle chart pattern. This means there is a downtrend line (A) and a horizontal support level (C) that make up the chart pattern.
Since the Initial Trend reading (B) is on the low side, there is little to no trend. This is ideal for a triangle chart pattern alert. The downtrend line (A) is a potential breakout trigger which would place the buy order at approximately 89.80. The horizontal support line (C) can be played two ways. The first could be as a breakdown level, but the second would rely on a slight change in the market's mood.
If the market cycle can do a transition to distribution, the support level can be bought and played with a very tight 10-12 pip stop loss.
Support is waiting between 89.50 to 89.41. Exhaustion at this level would be a buying opportunity but a breakdown through 89.40 would be a short trigger.
For further information on this and other chart patterns visit www.autochartist.com
Since the Initial Trend reading (B) is on the low side, there is little to no trend. This is ideal for a triangle chart pattern alert. The downtrend line (A) is a potential breakout trigger which would place the buy order at approximately 89.80. The horizontal support line (C) can be played two ways. The first could be as a breakdown level, but the second would rely on a slight change in the market's mood.
If the market cycle can do a transition to distribution, the support level can be bought and played with a very tight 10-12 pip stop loss.
Support is waiting between 89.50 to 89.41. Exhaustion at this level would be a buying opportunity but a breakdown through 89.40 would be a short trigger.
For further information on this and other chart patterns visit www.autochartist.com
- 2 October |
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