EUR/CAD — Return of Descending Channel on Daily Chart

EUR/CAD chart patterns demonstrate a particularly discouraging streak of losses in my trading record: from last year’s descending triangle, to H4 descending channel of September 2012, to a daily bullish flag last month. The most recent development in this currency pair’s price curve, like 8 months ago, is also a descending channel, although this one is more easily plotted on D1 rather than H4.
The chart below shows the channel outlined with yellow border lines. The cyan lines close to the channel lines are the entry levels for breakout trading. The green lines away from the channel are my potential profit targets. They were added using my free ChannelPattern script. I will consider only bullish breakout signal from this formation as the descending channel is considered to be a continuation Forex pattern for an ascending price wave.

You can download my MetaTrader 4 chart template for this EUR/CAD pattern. You may also use my free Chart Pattern Helper EA to trade this pattern.
Update 2013-05-14 21:11 GMT: Entered the long position today at 1.31825. Stop-loss is fixed at 1.31140 (the low of breakout candle). Take-profit at entry was set to 1.33137 but will go down with the channel’s slope every day. Unfortunately, the candle looks like it just bounced off the entry line without demonstrating any further breakout intentions.
Update 2013-05-15 15:50 GMT: Yeah, it was a classic fake-out. My stop-loss got hit at 13:17 GMT today. Good thing: my position size was 1/3 of normal. Bad thing: it was because of some bug in my Chart Pattern Helper EA expert advisor and I still got no idea how to fix it. Another note on the channel: with new spike high, it can be redrawn with new borders and reused for trading.

If you have any questions or comments regarding this descending channel on EUR/CAD chart, please feel free to submit them via the form below.

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