After a rather long period without any meaningful patterns, four channels on four different currency pairs will be available for trading during the coming week. The three of four patterns are formed on
The channels themselves are marked with yellow
It is the first chart pattern on AUD/CAD pair that I have spotted in my trading career. It is not a very popular currency cross, but it probably has some nice trading implications as a measure of China/US growth ratio. Anyway, the ascending channel pattern is a purely technical construct. In this case, the ascending channel appears inside an uptrend, so a breakout to the upside is to be expected. Unfortunately, it is not traded easily — the
Update: It looks like I have confused the colors for the AUD/CAD chart below. The cyan lines mark the pattern’s borders here, while the yellow ones are the entry points.
You can also download my MetaTrader 4 chart template for this AUD/CAD pattern.
Descending channel on EUR/AUD @ H4 chart also appears inside a trend of the same direction. I would expect a downward breakout here. Bullish position should be traded with much care.
You can also download my MetaTrader 4 chart template for this EUR/AUD pattern.
EUR/GBP shows a classic case of a descending chart pattern. Its bullish trend is broken by this downwardly sloped channel on 4-hour timeframe and should continue once the breakout to the upside occurs. The bearish side of the pattern will probably result in fakeouts only.
You can also download my MetaTrader 4 chart template for this EUR/GBP pattern.
USD/CAD is in an ascending channel, which is to continue a
You can also download my MetaTrader 4 chart template for this USD/CAD pattern.
Do remember to visit back to this post for updates on these trades’ execution.
Update 2012-11-12: The first trade triggered today. EUR/GBP broke through channel’s upper border (as expected). Since I have missed this entry point, I have used the ongoing
Update 2012-11-13: EUR/GBP trade closed by
Update 2012-11-14: EUR/GBP long
Update 2012-11-14 17:32 GMT: EUR/AUD position triggered several hours ago. Like expected, it went bullish. The entry price is 1.2211,
Update 2012-11-15 07:09 GMT: EUR/AUD long closed with profit about 7 hours ago at 1.2291. The exit price is lower than the original
Update 2012-11-15 12:18 GMT: AUD/CAD has hit its profit target 3 hours ago. Too bad I was not in this trade. Deleting the sell limit order now.
Update 2012-11-19 16:33 GMT: EUR/GBP position (that second entry) has reached its target less than an hour ago. Since the target level was sloped down, the
Update 2012-11-23 15:29 GMT: The last chart pattern got triggered. Short USD/CAD entry was executed at 0.9944 about 15 minutes ago. Downside breakout was expected here, so it is going according to a plan.
Update 2012-12-09 23:08 GMT: USD/CAD short position closed below
PS: It looks like all four channel patterns from this post resulted in profit. A great result, in my opinion.
If you have any questions or comments regarding the four analyzed channel patterns, please feel free to reply via the form below.
- admin_mm
- November 11, 2012
- zero comment