Descending Triangle on EUR/USD Daily Chart

A large descending triangle has formed on the EUR/USD daily chart. Its beginning can be traced back to about February 16. There are three zones where the price touches the upper (sloping) border of the pattern and three zones where it touches the bottom border. Although the triangle is formed at the end of the mid-sized bullish wave, it is predated by a rather strong bearish trend and thus can work as intended — as a continuation pattern.
You can see the chart pattern on the image below. The yellow lines show the border of the triangle. The cyan line marks the 10% buffer zone for a breakout and entering a sell position. The green line is the target level derived from the height of the triangle. Stop-loss is to be set at the high of the breakout bar or the bar before it if only a small part the former was traded inside the pattern’s borders. The trade will be cancelled if neither SL nor TP is triggered before November.

Update 2012-05-07: Market gapped down and rallied to my entry point and then retreated up significantly. It was too late for setting up the stop orders for entry, so I had to enter short at the market price of 1.3012. The stop-loss was set to 1.3178 — the high of the previous daily bar.
Update 2012-05-23: The position closed at my initial take-profit level of 1.2554 as the market fell down rapidly.

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

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