EUR/JPY: Ascending Triangle (14/08/2013)

Ascending Triangle (EUR/JPY)

Ascending Triangle (EUR/JPY)

 

On the EUR/JPY daily chart, there is a resistance level and a slope of higher highs.

This kind of formation is called ascending triangle, and happens when the buyers fail to exceed a certain level but gradually manage to push the price up, creating higher lows.

It is not certain which direction the price might take in this kind of situation (damn it!) BUT thank God we have our two ol’ friends, Buy and Sell Stop to help us out.

So, our suggestion is to place entry orders above the resistance level and beyond the slope of higher lows.

This way, no matter what direction the price gets, we will be riding the pip-train for sure!

Usually the price movement has the same magnitude as the height of the triangle, which in this case is around 1300 pips (woop woop!).

As we always say, place a STOP LOSS!!

 

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.