The Australian dollar is demonstrating another double top pattern on a four-hour chart versus its New Zealand counterpart. The last time such pattern appeared (in July), the trade went smoothly by the book. This time should be no different as the pattern looks even better with the only exception being a slight downward slope.
The yellow lines mark the two tops of the pattern and also its sloped neckline. The cyan line is my bearish breakout entry level placed at 10% of the pattern’s height from the neckline. The green line is my potential take-profit level placed at 100% of the pattern’s height below the border. I will set my stop-loss to the high of the breakout bar or to the high of the preceding bar if the breakout one is mostly outside the pattern. I will ignore bullish breakouts from this trend reversal formation. You can click on the screenshot below to see its full-size version:
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.
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