{"id":14763,"date":"2010-11-01T14:49:18","date_gmt":"2010-11-01T18:49:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14763"},"modified":"2010-11-01T14:49:18","modified_gmt":"2010-11-01T18:49:18","slug":"eurusd-triangle-pattern-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/01\/eurusd-triangle-pattern-trade\/","title":{"rendered":"EUR\/USD \u2013 Triangle Pattern Trade"},"content":{"rendered":"<p><strong>By Russell Glaser <\/strong>&#8211; Volatility in the EUR\/USD has fallen off and the pair has created a  triangle pattern on the daily chart. The following analysis shows  traders how to trade a breakout of the consolidation pattern including  predefined levels for limits and stop orders.<\/p>\n<p>Looking at the daily chart for the  EUR\/USD, an ascending triangle pattern has formed. The upper boundary  begins at the height of the uptrend at 1.4157 and the lower boundary  begins at the mid-October low of 1.3697. Multiple points of contact have  been made with the boundary lines with the most recent coming today  during the morning hours of the European trading session.<\/p>\n<p>As the previous trend is up, we should expect the pair to break to  the upside. A breakout higher from an ascending triangle pattern  typically performs better than a breakout to the downside.<\/p>\n<p>However, this rule is not set in stone and the trade can also be  played in the opposite direction should the pair break below the lower  boundary.<\/p>\n<p>Finding a price target for the triangle pattern is relatively easy.  Traders should measure the distance of the base of the triangle,  approximately 450 pips. Therefore, a limit order can be placed roughly  450 pips from the price where the pair moves above or below the boundary  lines.<\/p>\n<p>Traders will want to be patient and wait for confirmation that the  price has broken outside of the boundary lines before opening a position  in any one direction. Trading inside the triangle has its risks and is  not recommended.<\/p>\n<p>To protect against a false breakout traders should include a  protective stop. A stop to the downside can be placed below the support  level at 1.3800. A stop to the upside can be placed above the resistance  level of 1.4000.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/11\/EURUSD-Triangle.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/11\/EURUSD-Triangle.JPG\" alt=\"\" width=\"530\" height=\"577\" \/><\/a><\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by<span style=\"text-decoration: underline;\"> <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/span><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                                                                may     not    be                   suitable         for         all                            investors.                  There          is    a                                                    possibility                  that                           you               could                      sustain  a        loss              of     all            of            your                                              investment      and                                      therefore     you                              should         not                      invest                       money         that           you                              cannot                    afford  to                          lose.     You                              should          be               aware           of                    all             the           risks                                     associated              with                  Foreign                          Exchange                             trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Russell Glaser &#8211; Volatility in the EUR\/USD has fallen off and the pair has created a triangle pattern on the daily chart. The following analysis shows traders how to trade a breakout of the consolidation pattern including predefined levels for limits and stop orders. Looking at the daily chart for the EUR\/USD, an ascending &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/11\/01\/eurusd-triangle-pattern-trade\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;EUR\/USD \u2013 Triangle Pattern Trade&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14763","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=14763"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14763\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}