Ascending Triangle on NZD/JPY H4 Chart

A classic example of an ascending triangle chart pattern can now be seen on NZD/JPY H4 chart. Following a very long uptrend, a consolidation with a horizontal resistance and inclining support have formed a potential continuation signal. Personally, I will trade only the upward breakout and will ignore the bearish one. There are two reasons for that: first, it’s a continuation pattern in a strong bullish trend; second, the downward breakouts through an ascending support line are a real pain-in-the-ass to trade properly, especially on H4 timeframe.
The yellow lines on the chart screenshot below show the edges of the pattern. The cyan line is the breakout level, at which point I will enter a long position. My target is the green line, which is equal to the height of the triangle added to its top border. Stop-loss will be set to the breakout bar’s low, as usually. Feel free to click the image to get a larger screenshot of the NZD/JPY H4 chart:

If you have any questions or comments regarding this NZD/JPY chart pattern, please feel free to reply via the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

seventy six − = sixty eight