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AUD/NZD to Finalize Double Top on H4 Chart

The Australian dollar had a rally going against the New Zealand dollar from July 8 through July 19. AUD/NZD has been consolidating in a kind of a double top pattern since then. The pattern is completed only when the right top’s slope reaches the neckline, but it is already time to set up a pending stop order in preparation for the breakout.

The chart below shows the double top pattern delimited with the yellow lines. The top one marks the tops, and the bottom one marks the neckline. The cyan line is my potential entry level in case of a bearish breakout. It is located at 10% of the pattern’s height below the neckline. The green line is my target — it is located at 100% of the pattern’s height below the neckline. I will set my stop-loss to the breakout bar’s high (or the high of the preceding bar if the breakout one is mostly below the neckline). I will ignore bullish breakouts as double top is a bearish reversal pattern. You can click on the image below to see it the full-size chart:

AUD/NZD - Double Top Pattern on Four-Hour Chart as of 2016-07-24

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/NZD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this double top on AUD/NZD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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